[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5618 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5618
To promote defense innovation, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 19 (legislative day, December 16), 2024
Mr. Wicker introduced the following bill; which was read twice and
referred to the Committee on Armed Services
_______________________________________________________________________
A BILL
To promote defense innovation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fostering Reform
and Government Efficiency in Defense Act'' or ``FoRGED Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 101. Repeals of existing law to streamline the defense acquisition
process.
Sec. 102. Modifications to current defense acquisition requirements.
Sec. 103. Automatic sunset for future statutory reporting requirements.
TITLE II--DEFENSE ACQUISITION ROLES, RESPONSIBILITIES, AND
ORGANIZATIONS
Sec. 201. Transition of program executive officer role to portfolio
acquisition executive.
Sec. 202. Amendments to the Joint Requirements Oversight Council.
Sec. 203. Matters relating to the Director of Cost Assessment and
Program Evaluation.
Sec. 204. Establishment of Joint Requirements and Programming Board.
Sec. 205. Capstone requirements.
TITLE III--RAPID ACQUISITION AND COMMERCIAL CONTRACTING
Sec. 301. Milestone A.
Sec. 302. Modification to acquisition strategy.
Sec. 303. Exemptions for nontraditional defense contractors.
Sec. 304. Modifications to treatment of certain products and services
as commercial products and commercial
services.
Sec. 305. Modification to nontraditional defense contractor
definitions.
Sec. 306. Alternative capability based pricing.
Sec. 307. Modifications to certain procurement thresholds.
Sec. 308. Modifications to commercial solutions openings.
Sec. 309. Modifications to other transactions.
Sec. 310. Modifications to commercial product and commercial service
determinations by Department of Defense.
Sec. 311. Commercially acceptable transaction and payment methods.
Sec. 312. Transparency and accountability of contract awards.
Sec. 313. Limitation on required flowdown of contract clauses to
subcontractors providing commercial
products or commercial services.
Sec. 314. Modifications to relationship of other provisions of law to
procurement of commercial products and
commercial services.
Sec. 315. Nontraditional defense contractor commercial solutions
opening.
Sec. 316. Program management office competition.
Sec. 317. Middle tier of acquisition for rapid prototyping and rapid
fielding.
Sec. 318. Revision and codification of software acquisition pathways.
Sec. 319. Modifications to steps to identify and address potential
unfair competitive advantage of technical
advisors to acquisition officials.
Sec. 320. Modifications to procurement for experimental purposes.
Sec. 321. Consumption-based solutions.
TITLE IV--PROMOTION OF COMPETITION IN THE DEFENSE INDUSTRIAL BASE
Sec. 401. Program for enhancing secondary sources and supply chain
management for the Department of Defense.
Sec. 402. Administration of the industrial expansion program.
TITLE V--DEFENSE BUDGETING PROCESSES
Sec. 501. Review of structure of the budget and appropriations for
funding of defense acquisition programs.
Sec. 502. Modifications to the Defense Modernization Account.
Sec. 503. Amendments and repeals to budgetary requirements for defense
acquisition.
SEC. 101. REPEALS OF EXISTING LAW TO STREAMLINE THE DEFENSE ACQUISITION
PROCESS.
(a) In General.--The following provisions are hereby repealed:
(1) Section 3067 of title 10, United States Code.
(2) Section 3070 of title 10, United States Code.
(3) Section 3072 of title 10, United States Code.
(4) Section 874 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec.
3101).
(5) Section 913 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec.
3101).
(6) Section 810 of the National Defense Authorization Act
for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note prec.
3101).
(7) Chapter 205 of title 10, United States Code.
(8) Section 8669b of title 10, United States Code.
(9) Section 8669c of title 10, United States Code.
(10) Section 8688 of title 10, United States Code.
(11) Section 8696 of title 10, United States Code.
(12) Section 3135 of title 10, United States Code.
(13) Section 3138 of title 10, United States Code.
(14) Section 843 of the National Defense Authorization Act
for Fiscal Year 2013 (Public Law 112-239; 10 U.S.C. note prec.
3151).
(15) Section 3152 of title 10, United States Code.
(16) Section 3153 of title 10, United States Code.
(17) Section 3154 of title 10, United States Code.
(18) Section 1281 of the National Defense Authorization Act
for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 3153 note).
(19) Section 153 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec.
3201).
(20) Subsections (a)-(c) of section 804 of the Duncan
Hunter National Defense Authorization Act for Fiscal Year 2009
(Public Law 110-417; 122 Stat. 4356).
(21) Section 822 of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. note prec.
3201).
(22) Section 892 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 3201 note).
(23) Section 805 of the National Defense Authorization Act
for Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 3201 note).
(24) Section 823 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 3204 note).
(25) Section 802 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 3206 note).
(26) Section 3207 of title 10, United States Code.
(27) Section 807 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 3207 note).
(28) Section 3208 of title 10, United States Code.
(29) Section 3222 of title 10, United States Code.
(30) Section 3223 of title 10, United States Code.
(31) Section 3224 of title 10, United States Code.
(32) Section 3225 of title 10, United States Code.
(33) Section 856 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec.
3241).
(34) Section 1513 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec.
3241).
(35) Section 219 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. note prec. 3241).
(36) Section 220 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. note prec. 3241).
(37) Section 334 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec.
3241).
(38) Section 231 of the National Defense Authorization Act
for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. note prec.
3241).
(39) Section 852 of the Carl Levin and Howard P. ``Buck''
McKeon National Defense Authorization Act for Fiscal Year 2015
(Public Law 113-291; 10 U.S.C. note prec. 3241).
(40) Section 127 of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10
U.S.C. note prec. 3241).
(41) Subsections (a)-(f) of section 866 of the Ike Skelton
National Defense Authorization Act for Fiscal Year 2011 (Public
Law 111-383; 10 U.S.C. note prec. 3241).
(42) Section 143 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10
U.S.C. note prec. 3241).
(43) Section 254 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10
U.S.C. note prec. 3241).
(44) Section 886 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec.
3241).
(45) Section 890 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec.
3241).
(46) Subsections (a)-(c) of section 130 of the John Warner
National Defense Authorization Act for Fiscal Year 2007 (Public
Law 109-364; 10 U.S.C. note prec. 3241).
(47) Section 851 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10
U.S.C. note prec. 3241).
(48) Subsection (a)-(c) of section 802 of the National
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136; 10 U.S.C. note prec. 3241).
(49) Section 314 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10
U.S.C. note prec. 3241).
(50) Section 826 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (Public Law 106-398; 10
U.S.C. note prec. 3241).
(51) Section 806 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 10
U.S.C. note prec. 3241).
(52) Section 797 of the Department of Defense Appropriation
Act, 1983 (96 Stat. 1865)(as enacted into law by section 101(c)
of the Further Continuing Appropriations Act, 1983 (Public Law
97-377; 96 Stat. 1833).
(53) Section 3241 of title 10, United States Code.
(54) Section 368 of the National Defense Authorization Act
for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 3303 note).
(55) Section 818(a) of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 3304
note).
(56) Section 3247 of title 10, United States Code.
(57) Section 3323 of title 10, United States Code.
(58) Section 875 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. note prec.
3344 ).
(59) Section 822 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. note prec. 3344 ).
(60) Section 816 of the National Defense Authorization Act
for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. note prec.
3344).
(61) Section 809 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec.
3371).
(62) Section 3371 of title 10, United States Code.
(63) Section 3373 of title 10, United States Code.
(64) Section 3374 of title 10, United States Code.
(65) Section 883 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. 3372 note).
(66) Section 13004 of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136; 10 U.S.C. 3372
note).
(67) Section 3375 of title 10, United States Code.
(68) Section 3455 of title 10, United States Code.
(69) Section 803(a)(3) of the National Defense
Authorization Act for Fiscal Year 2022 (Public Law 117-81; 10
U.S.C. 3458).
(70) Section 8008 of the Department of Defense
Appropriations Act, 1998 (Public Law 105-56; 10 U.S.C. 3501).
(71) Section 318 of the National Defense Authorization Act
for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. note prec.
3671).
(72) Section 1018 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10
U.S.C. note prec. 3671).
(73) Section 3678 of title 10, United States Code.
(74) Section 133 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10
U.S.C. 3678 note).
(75) Chapter 258 of title 10, United States Code.
(76) Section 308 of the 2002 Supplemental Appropriations
Act for Further Recovery From and Response To Terrorist Attacks
on the United States (Public Law 107-206, 10 U.S.C. 3678 note).
(77) Section 831 of the National Defense Authorization Act
for Fiscal Year 2013 (Public Law 112-239; 10 U.S.C. note prec.
3701).
(78) Section 817 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10
U.S.C. note prec. 3701).
(79) Chapter 273 of title 10, United States Code.
(80) Section 891 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 3804 note).
(81) Section 231 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4001 note).
(82) Section 1544 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4001 note).
(83) Section 225 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. 4001 note).
(84) Section 233 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. 4001 note).
(85) Section 236 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. 4001 note).
(86) Section 1513 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. 4001 note).
(87) Section 226 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
(88) Section 229 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
(89) Section 380 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
(90) Section 823 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
(91) Section 833 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4001 note).
(92) Section 220 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4001 note).
(93) Section 226 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4001 note).
(94) Section 233 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4001 note).
(95) Section 236 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4001 note).
(96) Section 249 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4001 note).
(97) Section 223 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
(98) Section 228 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
(99) Section 229 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
(100) Section 232 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4001 note).
(101) Section 227 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. 4001 note).
(102) Section 217 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4001 note).
(103) Section 1056 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4001
note).
(104) Section 802 of the Cooperative Threat Reduction Act
of 1993 (Public Law 103-160; 10 U.S.C. 4001 note).
(105) Section 231 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4007 note).
(106) Section 1603 of the National Defense Authorization
Act for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4007
note).
(107) Section 4010 of title 10, United States Code.
(108) Section 222 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. 4014 note).
(109) Section 873 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. 4021 note).
(110) Section 13006 of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136; 10 U.S.C. 4022
note).
(111) Section 1543 of the National Defense Authorization
Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4025
note).
(112) Section 1089 of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4025
note).
(113) Section 4027 of title 10, United States Code.
(114) Section 220 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. note prec. 4061).
(115) Section 230 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. note prec. 4061).
(116) Section 225 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec.
4061).
(117) Section 812 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. note prec.
4061).
(118) Section 4066 of title 10, United States Code.
(119) Section 4067 of title 10, United States Code.
(120) Section 1708(b) of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4092 note).
(121) Section 250 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4093 note).
(122) Sectional 1104(f) of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10
U.S.C. 4093 note).
(123) Section 4957 of title 10, United States Code.
(124) Section 905 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. 4125 note).
(125) Section 235 of the National Defense Authorization Act
for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4126 note).
(126) Section 227 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec.
4141).
(127) Section 252 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. note prec.
4141).
(128) Section 233 of the National Defense Authorization Act
for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. note prec.
4141).
(129) Section 4142 of title 10, United States Code.
(130) Section 4143 of title 10, United States Code.
(131) Section 843 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. note prec. 4171).
(132) Section 839 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec.
4171).
(133) Section 242 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec.
4172).
(134) Section 223 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4172 note).
(135) Section 1043 of the National Defense Authorization
Act for Fiscal Year 2010 (Public Law 111-84; 10 U.S.C. 4174
note).
(136) Section 828 of the National Defense Authorization Act
for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note prec.
4201).
(137) Section 4203 of title 10, United States Code.
(138) Section 4204 of title 10, United States Code.
(139) Section 1676(b) of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205
note).
(140) Section 1683 of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205
note).
(141) Section 1685 of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205
note).
(142) Section 1686 of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205
note).
(143) Section 1688 of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4205
note).
(144) Section 1681(b) of the National Defense Authorization
Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4205
note).
(145) Section 1687 of the National Defense Authorization
Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4205
note).
(146) Section 1689 of the National Defense Authorization
Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4205
note).
(147) Section 1692 of the National Defense Authorization
Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4205
note).
(148) Section 1618 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(149) Section 1675 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(150) Section 1680 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(151) Section 1681 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(152) Section 1682 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(153) Section 1684 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(154) Section 1684 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(155) Section 1687 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 4205
note).
(156) Section 1662 of the Carl Levin and Howard P. ``Buck''
McKeon National Defense Authorization Act for Fiscal Year 2015
(Public Law 113-291; 10 U.S.C. 4205 note).
(157) Section 1663 of the Carl Levin and Howard P. ``Buck''
McKeon National Defense Authorization Act for Fiscal Year 2015
(Public Law 113-291; 10 U.S.C. 4205 note).
(158) Section 235 of the National Defense Authorization Act
for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4205 note).
(159) Section 237 of the National Defense Authorization Act
for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4205 note).
(160) Section 223(a)-(d) of the Ike Skelton National
Defense Authorization Act for Fiscal Year 2011 (Public Law 111-
383; 10 U.S.C. 4205 note).
(161) Section 233 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10
U.S.C. 4205 note).
(162) Section 223 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10
U.S.C. 4205 note).
(163) Section 234 of the National Defense Authorization Act
for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 4205 note).
(164) Section 232 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10
U.S.C. 4205 note).
(165) Section 234 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10
U.S.C. 4205 note).
(166) Section 224 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10
U.S.C. 4205 note).
(167) Section 234 of the National Defense Authorization Act
for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 4205 note).
(168) Section 3132 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (Public Law 106-398; 10
U.S.C. 4205 note).
(169) Section 235 of the Cooperative Threat Reduction Act
of 1993 (Public Law 103-160; 10 U.S.C. 4205 note).
(170) Section 243 of the Cooperative Threat Reduction Act
of 1993 (Public Law 103-160; 10 U.S.C. 4205 note).
(171) Section 231 of the Armament Retooling and
Manufacturing Support Act of 1992 (Public Law 102-484; 10
U.S.C. 4205 note).
(172) Section 224 of the Department of Energy National
Security and Military Applications of Nuclear Energy
Authorization Act of 1988 (Public Law 100-180; 10 U.S.C. 4205
note).
(173) Section 227 of the Department of Energy National
Security and Military Applications of Nuclear Energy
Authorization Act of 1988 (Public Law 100-180; 10 U.S.C. 4205
note).
(174) Section 213 of the Barry Goldwater Scholarship and
Excellence in Education Act (Public Law 99-661; 10 U.S.C. 4205
note).
(175) Section 1252 of the Defense Procurement Reform Act of
1984 (Public Law 98-525; 10 U.S.C. 4205 note).
(176) Section 8104 of the Department of Defense
Appropriations Act, 1985 (10 U.S.C. 4205 note) (as enacted into
law by section 101(h) of the Joint Resolution entitled ``Joint
Resolution continuing appropriations for the fiscal year 1985,
and for other purposes'', approved October 12, 1984 (Public Law
98-473; 98 Stat. 1837).
(177) Section 208 of the Department of Energy National
Security and Military Applications of Nuclear Energy
Authorization Act of 1988 (Public Law 100-180; 10 U.S.C. 4205
note).
(178) Section 802 of the Military Construction
Authorization Act, 1981 (Public Law 96-418; 10 U.S.C. 4205
note).
(179) Section 202 of the Department of Defense
Authorization Act, 1981 (Public Law 96-342; 10 U.S.C. 4205
note).
(180) Section 202 of the Department of Defense Supplemental
Appropriation Authorization Act, 1979 (Public Law 96-29; 10
U.S.C. 4205 note).
(181) Section 608 of the Military Construction
Authorization Act, 1975 (Public Law 93-552; 10 U.S.C. 4205
note).
(182) Section 837 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. note prec.
4211).
(183) Section 812 of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10
U.S.C. note prec. 4211).
(184) Section 806 of the National Defense Authorization Act
for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. note prec.
4211).
(185) Section 4212 of title 10, United States Code.
(186) Section 4214 of title 10, United States Code.
(187) Section 818(b)-(f) of the John Warner National
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
364; 10 U.S.C. note prec. 4231).
(188) Section 4231 of title 10, United States Code.
(189) Section 832 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4251 note).
(190) Section 802(d)(2) of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 4251 note).
(191) Section 838(a)(3)-(4) of the National Defense
Authorization Act for Fiscal Year 2018 (Public Law 115-91; 10
U.S.C. 4252 note).
(192) Section 1047(d) of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10
U.S.C. 4252 note).
(193) Subchapter IV of chapter 322 of title 10, United
States Code.
(194) Section 814 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10
U.S.C. 4271 note).
(195) Section 925(b) of the National Defense Authorization
Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 4271
note).
(196) Section 802 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4292 note).
(197) Section 4321 of title 10, United States Code.
(198) Section 4323 of title 10, United States Code.
(199) Section 4325 of title 10, United States Code.
(200) Section 4328 of title 10, United States Code.
(201) Section 812 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10
U.S.C. 4325 note).
(202) Section 4372 of title 10, United States Code.
(203) Section 4373 of title 10, United States Code.
(204) Section 4376 of title 10, United States Code.
(205) Section 4377 of title 10, United States Code.
(206) Section 4402 of title 10, United States Code.
(207) Subchapter II of chapter 327 of title 10, United
States Code.
(208) Section 224 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. note prec.
4501).
(209) Section 833 of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10
U.S.C. note prec. 4501).
(210) Section 831(b) of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10
U.S.C. note prec. 4501).
(211) Section 846 of the National Defense Authorization Act
for Fiscal Year 2013 (Public Law 112-239; 10 U.S.C. note prec.
4501).
(212) Section 863(a)-(h) of the Ike Skelton National
Defense Authorization Act for Fiscal Year 2011 (Public Law 111-
383; 10 U.S.C. note prec. 4501).
(213) Section 808 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec.
4501).
(214) Section 832 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10
U.S.C. note prec. 4501).
(215) Section 4505 of title 10, United States Code.
(216) Section 4506 of title 10, United States Code.
(217) Section 883(e) of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note
prec. 4571).
(218) Section 938 of the National Defense Authorization Act
for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. note prec.
4571).
(219) Section 1526 of the National Defense Authorization
Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4571
note).
(220) Section 221 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. 4571 note).
(221) Section 233 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4571 note).
(222) Section 224 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021(Public
Law 116-283;10 U.S.C. 4571 note).
(223) Section 225 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021(Public
Law 116-283;10 U.S.C. 4571 note).
(224) Section 835 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021(Public
Law 116-283;10 U.S.C. 4571 note).
(225) Section 226 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
(226) Section 231 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
(227) Section 254 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
(228) Section 255 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571 note).
(229) Section 1651 of the National Defense Authorization
Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571
note).
(230) Section 1755 of the National Defense Authorization
Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4571
note).
(231) Section 868 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. 4571 note).
(232) Section 1064 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. 4571 note).
(233) Section 1272 of the National Defense Authorization
Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 4571
note).
(234) Section 854 of the Carl Levin and Howard P. `Buck'
McKeon National Defense Authorization Act for Fiscal Year 2015
(Public Law 113-291; 10 U.S.C. 4571 note).
(235) Section 2867 of the National Defense Authorization
Act for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 4571
note).
(236) Section 215 of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10
U.S.C. 4571 note).
(237) Section 881 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4571 note).
(238) Section 804 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10
U.S.C. 4571 note).
(239) Chapter 345 of title 10, United States Code.
(240) Section 4703 of title 10, United States Code.
(241) Section 334 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 113 note).
(242) Section 378 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 113 note).
(243) Section 846(a) of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4811 note).
(244) Section 4813 of title 10, United States Code.
(245) Section 4814 of title 10, United States Code.
(246) Section 4815 of title 10, United States Code.
(247) Section 4816 of title 10, United States Code.
(248) Section 4173 of title 10, United States Code.
(249) Section 2228 of title 10, United States Code.
(250) Section 3249 of title 10, United States Code.
(251) Section 932 of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10
U.S.C. 2224 note).
(252) Section 849 of the National Defense Authorization Act
for Fiscal Year 2018 (Public Law 115-91; 131 Stat. 1487).
(253) Section 839 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 132
Stat. 1876).
(254) Section 387(c) of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105-85, 10 U.S.C. 195
note).
(255) Section 804 of the National Defense Authorization Act
for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2402).
(256) Section 881 of the National Defense Authorization Act
for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. note prec.
4601).
(257) Section 802 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10
U.S.C. note prec. 3062).
(258) Section 326 of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 3201 note).
(259) Section 913 of the Department of Defense
Authorization Act, 1986 (Public Law 99-145; 10 U.S.C. note
prec. 3201).
(260) Section 821 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec.
3451).
(261) Section 207(a)-(c) of the Weapon Systems Acquisition
Reform Act of 2009 (Public Law 111-23; 10 U.S.C. note prec.
4292).
(262) Section 824(a) of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10
U.S.C. 3774 note).
(263) Section 805 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. note prec.
3451).
(264) Section 844(b) of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 3453
note).
(265) Section 328 of the National Defense Authorization Act
for Fiscal Year 2010 (Public Law 111-84; 10 U.S.C. 2458 note).
(266) Section 325 of the Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10
U.S.C. 2461 note).
(267) Section 356 of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2461 note).
(268) Section 256 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10
U.S.C. 4811 note).
(269) Section 238(b) of the National Defense Authorization
Act for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4841
note).
(270) Subtitle D of title II of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119
Stat. 3175).
(271) Section 8062 of the Department of Defense
Appropriations Act, 2004 (Public Law 108-87; 10 U.S.C. 4841
note).
(272) Section 214 of the National Defense Authorization Act
for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 4841 note).
(273) Section 227 of the National Defense Authorization Act
for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 4841 note).
(274) Section 215 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10
U.S.C. 4841 note).
(275) Section 223 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4841 note).
(276) Section 846 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. 4811 note).
(277) Section 849 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 4811 note).
(278) Section 847 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4811 note).
(279) Section 844 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 4811 note).
(280) Section 8133 of the Department of Defense
Appropriations Act, 2000 (Public Law 106-79; 113 Stat. 1267).
(281) Section 867 of the National Defense Authorization Act
for Fiscal Year 2022 (Public Law 117-81; 10 U.S.C. 221 note).
(282) Section 322 of the National Defense Authorization Act
for Fiscal Year 2017 (Public 114-328; 10 U.S.C. 2228 note).
(283) Section 813 of the National Defense Authorization Act
for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 3458 note).
(284) Section 323 of the National Defense Authorization Act
for Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 4551).
(285) Section 218 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 8013 note).
(b) Clerical Amendments.--
(1) The table of sections at the beginning of chapter 131
of title 10, United States Code, is amended by striking the
item related to section 2228.
(2) The table of sections at the beginning of chapter 203
of title 10, United States Code, is amended by striking the
items related to sections 3067, 3070, and 3072.
(3) The table of sections at the beginning of chapter 207
of title 10, United States Code, is amended by striking the
items related to sections 3135 and 3138.
(4) The table of sections at the beginning of subchapter I
of chapter 209 of title 10, United States Code, is amended by
striking the items related to sections 3152, 3153, and 3154.
(5) The table of sections at the beginning of chapter 221
of title 10, United States Code, is amended by striking the
items related to sections 3207 and 3208.
(6) The table of sections at the beginning of chapter 222
of title 10, United States Code, is amended by striking the
items related to sections 3222, 3223, 3224, and 3225.
(7) The table of sections at the beginning of chapter 223
of title 10, United States Code, is amended by striking the
items related to sections 3241, 3247, and 3249.
(8) The table of sections at the beginning of chapter 242
of title 10, United States Code, is amended by striking the
item related to section 3323.
(9) The table of sections at the beginning of chapter 244
of title 10, United States Code, is amended by striking the
items related to sections 3371, 3373, 3374, and 3375.
(10) The table of sections at the beginning of chapter 247
of title 10, United States Code, is amended by striking the
item related to section 3455.
(11) The table of sections at the beginning of chapter 257
of title 10, United States Code, is amended by striking the
item related to section 3678.
(12) The table of sections at the beginning of chapter 301
of title 10, United States Code, is amended by striking the
items related to sections 4010 and 4027.
(13) The table of sections at the beginning of chapter 303
of title 10, United States Code, is amended by striking the
items related to sections 4066, 4067, 4142, and 4143.
(14) The table of sections at the beginning of chapter 307
of title 10, United States Code, is amended by striking the
item related to section 4173.
(15) The table of sections at the beginning of chapter 321
of title 10, United States Code, is amended by striking the
items related to sections 4203 and 4204.
(16) The table of sections at the beginning of subchapter I
of chapter 322 of title 10, United States Code is amended by
striking the item related to section 4231.
(17) The table of sections at the beginning of subchapter
II of chapter 322 of title 10, United States Code is amended by
striking the items related to sections 4212 and 4214.
(18) The table of subchapters at the beginning of chapter
322 of title 10, United States Code is amended by striking the
item related to subchapter IV.
(19) The table of sections at the beginning of chapter 323
of title 10, United States Code is amended by striking the item
related to sections 4321, 4323, 4325, and 4328.
(20) The table of sections at the beginning of chapter 325
of title 10, United States Code is amended by striking the item
related to sections 4372, 4373, 4376, and 4377.
(21) The table of subchapters at the beginning of chapter
327 of title 10, United States Code is amended by striking the
item related to subchapter II.
(22) The table of sections at the beginning of subchapter I
of chapter 327 of title 10, United States Code is amended by
striking the item related to section 4402.
(23) The table of sections at the beginning of chapter 341
of title 10, United States Code is amended by striking the
items related to sections 4505 and 4506.
(24) The table of chapters for part V of title 10, United
States Code, is amended by striking the items related to
chapters 205, 258, 273, and 345.
(25) The table of sections at the beginning of chapter 365
of title 10, United States Code is amended by striking the item
related to section 4703.
(26) The table of sections at the beginning of chapter 382
of title 10, United States Code is amended by striking the
items related to sections 4813, 4814, 4815, and 4816.
(27) The table of sections at the beginning of chapter 388
of title 10, United States Code, is amended by striking the
item related to section 4957.
(28) The table of sections at the beginning of chapter 863
of title 10, United States Code, is amended by striking the
items related to sections 8669b, 8669c, 8688, and 8696.
SEC. 102. MODIFICATIONS TO CURRENT DEFENSE ACQUISITION REQUIREMENTS.
(a) Modifications to Title 40.--Section 11101 of title 40, United
States Code, is amended by striking paragraph (2) and inserting the
following:
``(2) Executive agency.--The term `executive agency'
means--
``(A) an executive department specified in section
101 of title 5, other than the Department of Defense;
``(B) an independent establishment as defined in
section 104(1) of title 5; and
``(C) a wholly owned Government corporation fully
subject to chapter 91 of title 31.''.
(b) Modifications to Title 10.--Title 10, United States Code, is
amended--
(1) in section 2222--
(A) by striking subsections (e) through (g); and
(B) by redesignating subsections (h) and (i) as
subsections (e) and (f), respectively; and
(C) in subsection (f), as redesignated by
subparagraph (B) by striking paragraphs (9), (10), and
(11);
(2) in section 3012(3)(B), by striking ``lowest overall
cost alternative'' and inserting ``best value'';
(3) in section 3069--
(A) in subsection (a), by striking ``if that head
of an agency'' and all that follows through ``a
complete end item'';
(B) by striking subsections (b) through (d); and
(C) by redesignating subsection (e) as subsection
(b);
(4) in section 3204--
(A) in subsection (a)--
(i) by redesignating paragraphs (2) through
(7) as paragraphs (3) through (8),
respectively;
(ii) by inserting after paragraph (1), the
following:
``(2) market research indicates that the property or
service needed by the agency provides differentiated
capabilities, accelerated delivery schedules, or continuous
improvements;''.
(B) by striking subsections (b), (c), (d), and (g);
(C) by redesignating subsections (e) and (f) as
subsections (b) and (c), respectively;
(D) in subsection (b), as redesignated by
subparagraph (C)--
(i) in paragraph (1)--
(I) in subparagraph (A), by
striking ``and certifies the accuracy
and completeness of the justification''
and inserting ``in a manner that
provides an accurate and complete
justification''; and
(II) in subparagraph (B)--
(aa) by striking
``$10,000,000'' each place it
appears and inserting
``$100,000,000'';
(bb) in clause (i), by
striking ``$500,000'' and
inserting ``$10,000,000''; and
(cc) in clause (iii), by
striking ``$75,000,000'' and
inserting ``$500,000,000'';
(ii) in paragraph (3), by striking ``by
subsection (a)(2)'' and inserting ``by
paragraphs (3) or (4)(A) of subsection (a)'';
and
(iii) in paragraph (4)--
(I) in subparagraph (C), by
striking ``subsection (a)(7)'' and
inserting ``subsection (a)(8)''; and
(II) in subparagraph (E), by
striking ``subsection (a)(4)'' and
inserting ``subsection (a)(5)''; and
(E) in paragraph (1) of subsection (c), as
redesignated by subparagraph (C)--
(i) in subparagraph (A), by striking
``subsection (e)(1)'' and inserting
``subsection (b)(1)''; and
(ii) in subparagraph (B), by striking
``subsection (a)(2)'' and inserting
``subsection (a)(3)'';
(5) in section 3226--
(A) in subsection (a), by striking ``and other
program purposes conducted pursuant to subsection
(b)(6) of such section''; and
(B) by striking subsection (d);
(6) in section 3243(d)--
(A) by striking paragraph (2);
(B) by redesignating paragraph (3) as paragraph
(2); and
(C) in paragraph (1)(B), by striking ``subject to
paragraph (2),'';
(7) in section 3374, by inserting ``with significant
contract financing'' after ``undefinitized contractual action''
each place it appears.;
(8) in section 3601(c)(3)--
(A) in subparagraph (A), by striking ``Subject to
subparagraph (C), in any'' and inserting ``In any'';
(B) in subparagraph (B), by striking ``acquire
capability'' and all that follows through ``$50,000,000
during any fiscal year'' and inserting ``acquire
capability in an amount aggregating not more than
$3,000,000,000''; and
(C) by striking subparagraph (C);
(9) in section 3703--
(A) in subsection (a)(1)(A), by striking ``that
results in at least two or more responsive and viable
competing bids'';
(B) in subsection (c), by striking ``or 5 percent''
and inserting ``or 25 percent''; and
(C) in subsection (f), by striking ``under
subsection (a)(1) from such requirement'' and inserting
``from such requirement under paragraphs (1) or (2) of
subsection (a)'';
(10) in section 3705--
(A) by striking subsection (b); and
(B) by redesignating subsection (c) as subsection
(b);
(11) by amending section 3774 to read as follows:
``Sec. 3774. Preference for specially negotiated licenses
``The Secretary of Defense shall, to the maximum extent
practicable, negotiate and enter into a contract with a contractor for
a specially negotiated license for technical data to support the
product support strategy of a major weapon system or subsystem of a
major weapon system.'';
(12) in the table of sections for subchapter I of chapter
275, by striking the item relating to section 3774 and
inserting the following new item:
``3774. Preference for specially negotiated licenses.'';
(13) in section 3805(c), by striking ``15 percent'' and
inserting ``50 percent'';
(14) in section 4201--
(A) in subsection (a)(2)--
(i) in subparagraph (A), by striking
``$300,000,000 (based on fiscal year 1990
constant dollars)'' and inserting
``$1,000,000,000 (based on fiscal year 2024
constant dollars)''; and
(ii) in subparagraph (B), by striking
``$1,800,000,000 (based on fiscal year 1990
constant dollars)'' and inserting
``$5,000,000,000 (based on fiscal year 2024
constant dollars)''; and
(B) in subsection (b), by adding at the end the
following:
``(3) An acquisition program for a defense software program
as described by section 800 of the National Defense
Authorization Act for Fiscal Year 2020 (Public Law 116-92; 10
U.S.C. 4571 note).'';
(15) in section 4202(a)(2)--
(A) by striking subparagraph (B); and
(B) redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively;
(16) in section 4882, by striking ``the President, through
the head of any department'' each place it appears and
inserting ``the Secretary of Defense'';
(17) in section 4884, by striking ``The President'' and
inserting ``The Secretary of Defense''; and
(18) in section 8683--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(1)
Appropriations'' and inserting
``Appropriations''; and
(ii) by striking paragraph (2); and
(B) in subsection (c), by striking ``$10,000,000''
and inserting ``$50,000,000''.
(c) Modifications to National Defense Authorization Acts.--
(1) Section 229(c)(2)(A)(ii) of the National Defense
Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10
U.S.C. 3601 note) is amended by striking ``$100,000,000'' and
inserting ``$300,000,000''.
(2) Section 890 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10
U.S.C. note prec. 3701) is amended--
(A) in subsection (b)(2), by striking ``minimal
reporting'' and inserting ``no unique reporting''; and
(B) by striking subsection (d).
(3) Section 873 of the National Defense Authorization Act
for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 3702 note)
is amended--
(A) in subsection (a)--
(i) by striking ``valued at less than
$7,500,000''; and
(ii) by striking ``pursuant to'' and all
that follows through ``Transfer Program,'';
(B) in subsection (b), by striking ``pursuant to''
and all that follows through ``Research Program,'';
(C) by striking subsections (c) and (f); and
(D) by redesignating subsections (d), (e), and (g)
as subsection (c), (d), and (e), respectively.
SEC. 103. AUTOMATIC SUNSET FOR FUTURE STATUTORY REPORTING REQUIREMENTS.
(a) In General.--Chapter 23 of title 10, United States Code, is
amended by inserting after section 480 the following new section:
``Sec. 480a. Reports to Congress: Termination of indefinite-duration
reports after five years
``(a) In General.--Any provision of law enacted after the date of
the enactment of this section that includes an indefinite-duration
report requirement shall cease to be effective, with respect to that
requirement, five years after the date of the enactment of that
provision of law unless that provision of law expressly states that
this section is inapplicable to that requirement or that provision of
law.
``(b) Indefinite-Duration Report Requirement Defined.--In this
section, the term `indefinite-duration report requirement' means a
requirement in any provision of law for the Secretary of Defense (or
any other officer or employee of the Department of Defense) to submit
to Congress (or any committee of Congress) a periodic report for which
the law does not--
``(1) state a specific period of time as the period during
which that report is required to be submitted or that provision
of law is in effect; or
``(2) state a specific termination date for the requirement
to submit the report or for that provision of law.
``(c) Periodic Report Defined.--In this section, the term `periodic
report' means a report required to be submitted on an annual,
semiannual, or other regular periodic basis.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
480 the following new item:
``480a. Reports to Congress: Termination of indefinite-duration reports
after five years.''.
TITLE II--DEFENSE ACQUISITION ROLES, RESPONSIBILITIES, AND
ORGANIZATIONS
SEC. 201. TRANSITION OF PROGRAM EXECUTIVE OFFICER ROLE TO PORTFOLIO
ACQUISITION EXECUTIVE.
(a) Definition.--Section 1737(a) of title 10, United States Code,
is amended by striking paragraph (4) and inserting the following:
``(4) The term `portfolio acquisition executive' means the
primary stakeholder and member of the acquisition workforce
with overall management of requirements, programming, and
acquisition of defense acquisition programs assigned by the
service acquisition executive or component acquisition
executive and shall have all the necessary officials and
functional support directly under the control portfolio
acquisition executive, including responsibility for performance
evaluations, to the maximum extent practicable to develop,
procure, and transition programs into an operational
capability.''.
(b) Critical Acquisition Positions.--Section 1731(a)(1)(B)(i) of
title 10, United States Code, is amended by striking ``Program
executive officer'' and inserting ``Portfolio acquisition executive''.
(c) Position Qualifications.--Section 1735(c) of title 10, United
States Code, is amended--
(1) in the subsection heading, by striking ``Program
Executive Officers'' and inserting ``Portfolio Acquisition
Executive''; and
(2) by striking ``program executive officer'' and inserting
``portfolio acquisition executive''.
(d) Government Performance of Certain Acquisition Functions.--
Section 1706(a) of title 10, United States Code, is amended--
(1) in paragraph (1), by striking ``Program executive
officer'' and inserting ``Portfolio acquisition executive'';
and
(2) in paragraph (2), by striking ``Deputy program
executive officer'' and inserting ``Deputy portfolio
acquisition executive''.
(e) Duties Related to Cadre of Intellectual Property Experts.--
Section 1707(c) of title 10, United States Code, is amended by striking
``program executive officer'' and inserting ``portfolio acquisition
executive''.
(f) Portfolio Acquisition Executive Office .--Section 1509 of the
James M. Inhofe National Defense Authorization Act for Fiscal Year 2023
(Public Law 117-263; 10 U.S.C. 167b) is amended--
(1) by striking ``program executive office'' each place
that it appears and inserting ``portfolio acquisition executive
office''; and
(2) in subsection (c), by striking ``Program Executive
Office'' in the subsection heading and inserting ``Portfolio
Acquisition Executive Office''.
(g) Technology Release and Foreign Disclosure Reform Initiative.--
Section 918(a)(2)(D)(ii) of the National Defense Authorization Act for
Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 301 note) is amended by
striking ``program executive officer'' and inserting ``portfolio
acquisition executive''.
(h) Software Development and Software Acquisition Training and
Management Programs.--Section 862 of the National Defense Authorization
Act for Fiscal Year 2020 (Public Law 116-92; 10 U.S.C. 1741 note) is
amended--
(1) in subsection (a)(2)(A), by striking ``program
executive officers'' and inserting ``portfolio acquisition
executives''; and
(2) in subsection (c)(1)--
(A) in the paragraph heading, by striking ``program
executive officer'' and inserting ``portfolio
acquisition executive''; and
(B) by striking ``program executive officer'' and
inserting ``portfolio acquisition executive''.
(i) Authority To Establish Different Minimum Requirements.--Section
1764(b)(2) of title 10, United States Code, is amended by striking
``Program executive officer'' and inserting ``Portfolio acquisition
executive''.
(j) Prizes for Advanced Technology Achievements.--Section
4025(g)(2)(C) of title 10, United States Code, is amended by striking
``program executive11 officer'' both places it appears and inserting
``portfolio acquisition executive''.
(k) Rating Chains for System Program Managers.--Section 323 of the
National Defense Authorization Act for Fiscal Year 2013 (Public Law
112-239; 126 Stat. 1696) is amended by striking ``program executive
officer'' and inserting ``portfolio acquisition executive''.
(l) Space System Acquisition and the Adaptive Acquisition
Framework.--Section 807 of the William M. (Mac) Thornberry National
Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10
U.S.C. 9081 note) is amended--
(1) in subsection (b)(1)--
(A) in the paragraph heading, by striking ``Program
executive officer'' and inserting ``Portfolio
acquisition executive''; and
(B) by striking ``program executive officer'' and
inserting ``portfolio acquisition executive''; and
(2) in subsection (e)(6)--
(A) in the paragraph heading, by striking ``Program
executive officer'' and inserting ``Portfolio
acquisition executive''; and
(B) by striking ``program executive officer'' and
inserting ``portfolio acquisition executive''.
SEC. 202. AMENDMENTS TO THE JOINT REQUIREMENTS OVERSIGHT COUNCIL.
(a) Modified Responsibilities.--Section 181 of title 10, United
States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``, approving,
and prioritizing'';
(B) in paragraph (2), by striking ``validate joint
requirements'' and inserting ``review joint
requirements'';
(C) in paragraph (3), by striking ``and
validating'';
(D) in paragraph (4), by striking ``and
approving'';
(E) in paragraph (5), by striking the semicolon at
the end and inserting ``; and'';
(F) in paragraph (6), by striking ``; and'' and
inserting a period; and
(G) by striking paragraph (7);
(2) in subsection (c)(3), by striking ``provide the
chairman any dissenting view of members of the council under
paragraph (1) with respect to such recommendation'' and
inserting ``first seek concurrence from the Joint Requirements
and Programming Board of the Department of Defense''.
(2) in subsection (e), by striking ``, except for
performance requirements specified in subsections (b)(4) and
(b)(5),''.
(b) Technical and Conforming Amendments.--(1) Section
225(b)(2)(C)(ii) of title 10, United States Code, is amended by
striking ``approved'' and inserting ``reviewed''.
(2) Section 3136(e)(1)(A) of title 10, United States Code, is
amended--
(A) by striking ``in excess of--'' and all that follows
through ``(i) a specific limitation'' and inserting ``in excess
of a specific limitation''; and
(B) by striking clause (ii).
SEC. 203. MATTERS RELATING TO THE DIRECTOR OF COST ASSESSMENT AND
PROGRAM EVALUATION.
(a) Role.--Section 139a of title 10, United States Code, is
amended--
(1) in subsection (b)(2), by striking ``without obtaining
the approval or concurrence of any other official within the
Department of Defense'' and inserting ``only with concurrence
from the Joint Requirements and Programming Board of the
Department of Defense''; and
(2) in subsection (d)(4), by striking `` and performance of
such analyses, as directed by the Secretary of Defense''.
(b) Functions.--Section 3221(b) of title 10, United States Code, is
amended--
(1) by striking paragraph (6); and
(2) by redesignating paragraphs (7) and (8) as paragraphs
(6) and (7), respectively.
(c) Annual Aircraft Procurement Plan.--Section 231a(c)(2) of title
10, United States Code, is amended--
(1) by striking subparagraph (E); and
(2) by redesignating subparagraph (F) as subparagraph (E).
SEC. 204. ESTABLISHMENT OF JOINT REQUIREMENTS AND PROGRAMMING BOARD.
(a) In General.--Chapter 7 of title 10, United States Code, is
amended by inserting after section 185 the following new section:
``Sec. 186. Joint Requirements and Programming Board
``(a) Establishment.--There is established in the Department of
Defense a Joint Requirements and Programming Board (in this section
referred to as the `Board').
``(b) Leadership.--The Director of Cost Assessment and Program
Evaluation and the Chairman of the Joint Requirements Oversight Council
shall serve as co-chairpersons of the Board.
``(c) Responsibilities.--The Board shall--
``(1) be the forum through which shall be exercised all
duties and responsibilities of--
``(A) the Joint Requirements Oversight Council with
respect to joint military capabilities requirements;
and
``(B) the Director of Cost Assessment and Program
Evaluation with respect to program evaluation;
``(2) be the forum for the review for recommendation of--
``(A) all requirements documents referred to the
Joint Requirements Oversight Council; and
``(B) all program issue papers referred to the
Director of Cost Assessment and Program Evaluation; and
``(3) be the single point of interface--
``(A) between the Chairman of the Joint
Requirements Oversight Council and the Chairman of the
Joint Chiefs of Staff with respect to recommendations
relating to joint military capabilities requirements
under section 181 of this title; and
``(B) between the Director of Cost Assessment and
Program Evaluation and the Deputy Secretary of Defense
and the Secretary of Defense with respect to functions
described in section 139a of this title.
``(d) Recommendations.--
``(1) Majority vote required.--The Board shall make a
recommendation with respect to an issue only if the
recommendation is agreed to by a majority vote of the members
of the functional committees established under subsection
(e)(2).
``(2) Status of recommendations.--A recommendation agreed
to as described in paragraph (1) shall be treated as an
official policy recommendation of the Board unless the
executive committee established under subsection (e)(1)
unanimously votes to reject the recommendation.
``(3) Dissenting opinions.--The co-chairpersons of the
Board may write dissenting opinions to accompany a
recommendation of the Board agreed to as described in paragraph
(1) for consideration by the Deputy Secretary of Defense or the
Secretary of Defense.
``(e) Organization.--The Board shall be composed of--
``(1) an executive committee that supports the co-
chairpersons in carrying out their responsibilities; and
``(2) functional committees established by the co-
chairpersons to consider portfolios of joint military
capabilities, mission areas, or functions in terms of their
requirements, programs, and resourcing.
``(f) Membership.--
``(1) Executive committee.--The executive committee
established under subsection (e)(1) shall be composed of the
co-chairpersons of the Board and all other members of the Joint
Requirements Oversight Council.
``(2) Functional committees.--Each functional committee
established under subsection (e)(2) shall be composed of--
``(A) one member designated by each portfolio
acquisition executive or similar portfolio manager who
is likely to execute a recommendation made by the
functional committee;
``(B) one member designated by each commander of a
combatant command, if matters related to the area of
responsibility or functions of that command are likely
to be considered by the functional committee;
``(C) one member designated by the Director of Cost
Assessment and Program Evaluation; and
``(D) one member designated by the Chairman of the
Joint Requirements Oversight Council.
``(g) Procedures.--
``(1) Identification and prioritization of issues.--
``(A) In general.--The co-chairpersons of the Board
are responsible for identifying and prioritizing issues
to be considered by each of the functional committees
established under subsection (e)(2).
``(B) Nomination of issues.--Any member of the
executive committee or a functional committee
established under subsection (e) may nominate an issue
for consideration by the co-chairpersons under
subparagraph (A).
``(2) Quorum for functional committees.--
``(A) In general.--For a meeting of a functional
committee established under subsection (e)(2) to have a
quorum--
``(i) two-thirds of the members of the
functional committee are required to be present
or voting by proxy; and
``(ii) both members identified in
subparagraphs (C) and (D) of subsection (f)(2),
and any member described in subsection
(f)(2)(A) with responsibility for execution
related to the issue under consideration, are
required to be present or voting by proxy.
``(B) Quorum and votes by proxy.--Any member
described in subsection (f)(2) may establish a quorum
or vote by proxy.
``(h) Support.--The Secretary of Defense shall ensure that the
executive committee established under subsection (e)(1) has adequate
staff directly responsible to the co-chairpersons of the Board to
assist in identifying, reviewing, coordinating, and analyzing all
matters brought before the Board.''.
(b) Clerical Amendment.--The table of sections for such title is
amended by inserting after the item relating to section 185 the
following new item:
``186. Joint Requirements and Programming Board.''.
(c) Technical and Conforming Amendments.--
(1) Joint requirements oversight council.--Section 181(b)
of such title is amended, in the matter preceding paragraph
(1), by inserting ``, subject to section 186 of this title,''
after ``shall assist''.
(2) Director of cost assessment and program evaluation.--
Section 139a of such title is amended--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) in the matter preceding
subparagraph (A), by inserting ``,
subject to section 186 of this title,''
after ``shall provide''; and
(II) in subparagraph (A), by
striking ``section 2334'' and inserting
``section 3221''; and
(ii) in paragraph (2), by striking ``The
Director'' and inserting ``Subject to section
186 of this title, the Director''; and
(B) in subsection (d)--
(i) in paragraph (1), by striking ``section
2334'' and inserting ``section 3221''; and
(ii) by striking paragraph (9).
SEC. 205. CAPSTONE REQUIREMENTS.
(a) In General.--Chapter 221 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 3209. Capstone requirements
``(a) In General.--The Secretary of each military department and
the Director of one more defense agencies designated by the Secretary
of Defense for purposes of this section shall establish a capstone
requirement approach for each portfolio acquisition executive for which
that official has responsibility to enable greater speed, agility, and
innovation in fielding military capabilities. Each such capstone
requirement shall be established in consultation with the Joint
Requirements and Programming Board.
``(b) Elements.--Under the capstone requirements for an acquisition
portfolio, the Secretary of the military department, or Director of the
defense agency shall--
``(1) develop a general set of requirements for the
acquisition portfolio in accordance with subsection (c) under
which programs or projects may be initiated;
``(2) authorize the portfolio acquisition executive or
similar portfolio manager for the portfolio to change the scope
and requirements for programs within the portfolio, subject to
subsection (d);
``(3) assign representatives of operational forces to the
acquisition portfolio and authorize them to perform the
functions specified in subsection (e);
``(4) maximize the use of prototyping, experimentation, and
minimum viable products to shape capability scope and
requirements;
``(5) authorize the portfolio acquisition executive or
similar portfolio manager to resource and acquire commercial or
nondevelopmental items under the capstone requirement by
validating the need with the representatives assigned under
paragraph (3);
``(6) manage information technology requirements using
dynamically prioritized lists of user needs rather than large
static requirements documents; and
``(7) iteratively define, prioritize, and refine
requirements at the portfolio, program, and iteration levels
based on user input and previous deliveries.
``(c) Capstone Set of Requirements.--The capstone set of
requirements for an acquisition portfolio developed under subsection
(b)(1) shall be designed--
``(1) to guide the iterative delivery of an integrated
suite of capabilities to maximize operational impact;
``(2) to provide enduring themes based on strategic needs
and relevant concepts of operation, not system-specific;
``(3) to include measures of force effectiveness for a
force mix of capabilities to be measured against; and
``(4) to include kill chains, effects chains, vignettes of
operational scenarios, and related mission engineering
initiatives across the Department of Defense.
``(d) Authority to Revise Programs Within a Portfolio.--The
authority under subsection (b)(2)--
``(1) shall be carried out in consultation with operational
commands and the Joint Requirements and Programming Board; and
``(2) does not include authority to change key performance
parameters for a major defense acquisition program.
``(e) Functions of Operational Representatives.--An operational
representative assigned to an acquisition portfolio under subsection
(b)(3) shall be provided authority--
``(1) to shape the vision and priorities for key capability
areas;
``(2) to provide the acquisition community and developers
insights into operations;
``(3) to provide feedback on interim developments;
``(4) to validate the need for commercial or
nondevelopmental items;
``(5) to foster collaboration among the acquisition
community, developers, and users of the capability to be
fielded; and
``(6) to provide advice to the portfolio acquisition
executive or similar portfolio manager.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 221 of title 10, United States Code, is amended by inserting
after the item relating to section 3208 the following new item:
``3209. Capstone requirements.''.
TITLE III--RAPID ACQUISITION AND COMMERCIAL CONTRACTING
SEC. 301. MILESTONE A.
(a) Elimination of Requirement for Determination Prior to Milestone
A Approval.--
(1) In general.--Section 4251 of title 10, United States
Code, is hereby repealed.
(2) Clerical amendment.--The table of sections at the
beginning of subchapter III of chapter 322 of title 10, United
States Code, is amended by striking the item relating to
section 4251.
(b) Director of Cost Assessment and Program Evaluation Functions.--
Section 3221(b)(6)(A)(i) of title 10, United States Code, is amended by
striking ``4251 or''.
(c) Independent Cost Estimate Required Before Approval.--Section
3222(a) of title 10, United States Code, is amended--
(1) by striking ``a milestone phase'' and inserting ``the
engineering and manufacturing development phase, or production
and deployment phase,''; and
(2) by striking ``authority that--'' and all that follows
through ``(2) for the engineering and manufacturing development
phase, or production and deployment phase, includes a cost
estimate'' and inserting ``authority that includes a cost
estimate''.
SEC. 302. MODIFICATION TO ACQUISITION STRATEGY.
Section 4211 of title 10, United States Code, is amended--
(1) in subsection (a), by striking ``, each major automated
information system,'';
(2) in subsection (b), by striking ``the Under Secretary of
Defense for Acquisition and Sustainment, or the milestone
decision authority, when the milestone decision authority is
the service acquisition executive of the military department
that is managing the program,'' and inserting ``the portfolio
acquisition executive, or the decision authority, when the
decision authority is the service acquisition executive of the
military department or the Under Secretary of Defense for
Acquisition and Sustainment,'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``, each major automated
information system,'';
(ii) by striking ``the Under Secretary, or
the milestone decision authority, when the
milestone decision authority is the service
acquisition executive of the military
department that is managing the program,'' and
inserting ``the portfolio acquisition
executive, or the decision authority, when the
decision authority is the service acquisition
executive of the military department or the
Under Secretary of Defense for Acquisition and
Sustainment,'';
(iii) by amending subparagraph (A) to read
as follows:
``(A) the strategy clearly describes the proposed top-level
business and capability management approach for the program or
system, and to the maximum extent practicable, describes how a
portfolio of capabilities within an enduring set of
requirements will be developed, procured, and fielded rather
than detailing a specific end-item;''; and
(iv) in subparagraph (B), by striking
``with available resources'' and inserting
``within a general set of resources''; and
(B) by amending paragraph (2) to read as follows:
``(2) Each strategy shall, where appropriate, consider the
following:
``(A) An approach that delivers required capabilities in
increments, each depending on available mature technology, and
that recognizes up front the need for future capability
improvements or transitions to alternative end-items through
use of continuous competition.
``(B) Requirements related to logistics, maintenance, and
sustainment in accordance with sections 2464 and 2466 of this
title, and the acquisition of technical data and computer
software data to enable such requirements in accordance with
sections 3771 through 3775 of this title.
``(C) A process for collaborative interaction and market
research with the science and technology community, including
Department of Defense science and technology reinvention
laboratories, government innovation cells, academia, small
businesses, nontraditional defense contractors, and other
contractors.
``(D) Identification of enterprise-wide designs and
standards in support of an architecture that provides for an
integrated suite of capabilities that focuses on simplicity of
implementation and speed of delivery.
``(E) Overarching roadmaps that created integrated
strategic schedules of legacy systems and new capabilities and
a mapping of enduring requirements to elements of the portfolio
of capabilities.
``(F) A contracting strategy that develops long-term
partnerships with multiple companies to actively contribute to
architectures, development, production, and sustainment across
the portfolio of capabilities by decomposing large systems into
smaller sets of projects across time and technical component.
``(G) An assignment of roles and responsibilities to the
acquisition workforce within the portfolio acquisition
executive, identification of external stakeholder dependencies,
and the need for subject matter expert inputs at critical
points in the program, including the need for special hiring
authority or advisory and assistance services.
``(H) A process of testing and experimentation with the
test community and end users to ensure continuous user
feedback, acceptance, and development of concepts of
operations.''; and
(4) by striking subsections (d) and (e) and inserting the
following:
``(d) Review.--The decision authority shall review and approve, as
appropriate, the acquisition strategy for a major defense acquisition
program or major system prior to the acquisition decision memorandum
and ensure that the strategy is updated at regular intervals to
incorporate significant changes to program requirements, resourcing, or
acquisition decisions.
``(e) Decision Authority Defined.--In this section, the term
`decision authority', with respect to a major defense acquisition
program or major system, means the official within the Department of
Defense designated with the overall responsibility and authority for
acquisition decisions for the program or system, including authority to
approve entry of the program or system into the next phase of the
acquisition process.''.
SEC. 303. EXEMPTIONS FOR NONTRADITIONAL DEFENSE CONTRACTORS.
Nontraditional defense contractors, as defined by section 3014 of
title 10, United States Code, shall not be subject to any of the
following requirements:
(1) Defense Federal Acquisition Regulation Supplement
252.242-7006.
(2) Defense Federal Acquisition Regulation Supplement
252.234-7002.
(3) Defense Federal Acquisition Regulation Supplement
252.242-7002.
(4) Defense Federal Acquisition Regulation Supplement
252.242-7004.
(5) Defense Federal Acquisition Regulation Supplement
252.242-7003.
(6) Defense Federal Acquisition Regulation Supplement
252.242-7001.
(7) Defense Federal Acquisition Regulation Supplement
252.242-7005.
(8) Defense Federal Acquisition Regulation Supplement
215.407.
(9) Section 3702 of title 10, United States Code.
(10) Part 31 of the Federal Acquisition Regulation.
SEC. 304. MODIFICATIONS TO TREATMENT OF CERTAIN PRODUCTS AND SERVICES
AS COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES.
Section 3457 of title 10, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before
``Nothwithstanding'';
(A) by striking ``may be treated'' and inserting
``shall be treated''; and
(B) by adding at the end the following new
paragraph:
``(2) The requirement under paragraph (1) may be waived with a
written determination approved by the head of contracting activity,
including an explanation of why commercial procedures should not be
used or tailored and market research demonstrating that no other
supplier could provide the required product or services under
commercial procedures.'';
(2) by striking subsection (b); and
(3) by redesignating subsection (c) as subsection (b).
SEC. 305. MODIFICATION TO NONTRADITIONAL DEFENSE CONTRACTOR
DEFINITIONS.
Section 3014 of title 10, United States Code, is amended--
(1) by striking ``means an entity that is not currently
performing'' and inserting the following: ``means an entity
that--
``(1) is not currently performing''; and
(2) by striking ``such section.'' and inserting the
following: ``such section;
``(2) certifies that, for the ultimate parent company's
three audited annual financial statements preceding the
solicitation of sources by the Department of Defense for the
procurement or transaction, has--
``(A) achieved more than 30 percent year-over-year
revenue growth; or
``(B) has reinvested back into the business more
than 10 percent of its revenue through non-reimbursable
research and development; or
``(3) certifies that it has raised funding through third-
party sources in exchange for equity amounting to a minimum of
5 percent of the value of the company's total outstanding
shares within the last two years.''.
SEC. 306. ALTERNATIVE CAPABILITY BASED PRICING.
(a) Program.--The head of an agency (as that term is defined in
section 3004 of title 10, United States Code) may use alternative
capability-based analysis to determine whether the proposed price or
fee for a commercial product or commercial service offered by a
nontraditional defense contractor (as that term is defined in section
3014 of such title) is fair and reasonable.
(b) Alternative Capacity-Based Analysis Defined.--In this section,
the term ``alternative capability-based analysis'' means an analysis of
the value to the Federal Government of a commercial product or
commercial service that considers one or more of the following
elements:
(1) The fitness of the product or service for the
particular purpose such product or service is being procured.
(2) The unique nature of technical expertise required to
produce or provide and the non-Federal resources expended to
develop such product or service.
(3) The business model or financial projections of the
nontraditional defense contractor, commensurate with the scale
of the potential investment by the Secretary of Defense, which
may include cost information, self-funded risk, financial
projections, expenditure rates, estimates of total sales
market, and other financial, technical, or management data.
(4) The estimated total cost avoidance or increased
capacity afforded by the offered product or service in relation
to current and future costs of programs and operations that
provide the same or similar capabilities.
(5) Input from the military user on the potential value
added by the improved capabilities or production processes.
(6) An analysis of competitive capabilities offered within
a fixed budget or price set by the government in a
solicitation.
SEC. 307. MODIFICATIONS TO CERTAIN PROCUREMENT THRESHOLDS.
(a) Simplified Procedures for Small Purchases.--Section 3205(a) of
title 10, United States Code, is amended--
(1) in paragraph (1), by striking ``simplified acquisition
threshold'' and inserting ``threshold specified in section
3571(a) of this title''; and
(2) in paragraph (2), by striking ``$5,000,000'' and
inserting ``$50,000,000''.
(b) Simplified Acquisition Threshold.--Section 3571 of title 10,
United States Code, is amended--
(1) in subsection (a), by striking ``as specified in
section 134 of title 41'' and inserting ``$10,000,000''; and
(2) in subsection (b)--
(A) by inserting ``(1)'' before ``No law''; and
(B) by adding at the end the following new
paragraph:
``(2) For purposes of acquisitions by agencies named in section
3063 of this title, the small business reservation established in
section 15(j) of the Small Business Act (15 U.S.C. 644(j)) shall be
$500,000.''.
(c) Micro-Purchase Threshold.--Section 3573 of title 10, United
States Code, is amended by striking ``$10,000'' and inserting
``$100,000''.
(d) Deductions From Amounts Due Carriers.--Section 2636(b)(1) of
title 10, United States Code, is amended by striking ``simplified
acquisition threshold'' and inserting ``threshold specified in section
3571(a) of this title''.
(e) Planning and Solicitation Requirements.--Section 3206(b) of
title 10, United States Code, is amended in subsection (b) by striking
``simplified acquisition threshold'' and inserting ``threshold
specified in section 3205(a)(2) of this title''.
(f) Contracts Awarded Using Procedures Other Than Sealed-bid
Procedures.--Section 3321(b)(3) of title 10, United States Code, is
amended by striking ``simplified acquisition threshold'' and inserting
``threshold specified in section 3571(a) of this title''.
(g) Cost Contracts.--Section 3322(c)(1)(B) of title 10, United
States Code, is amended by striking ``simplified acquisition
threshold'' and inserting ``threshold specified in section 3571(a) of
this title''.
(h) Preference for Commercial Products and Commercial Services.--
Section 3453(c)(1) of title 10, United States Code, is amended by
striking ``simplified acquisition threshold'' each place it appears and
inserting ``threshold specified in section 3571(a) of this title''.
(i) Preference for Commercial Services.--Section 876 of the
National Defense Authorization Act for Fiscal Year 2017 (Public Law
114-328; 10 U.S.C. 3453 note) is amended--
(1) by striking ``$10,000,000'' each place it appears and
inserting ``$50,000,000''; and
(2) in paragraph (2), by striking ``simplified acquisition
threshold'' and inserting ``threshold specified in section
3571(a) of this title''.
(j) Market Research and Preference for Commercial Items.--Section
855(a)(1) of the National Defense Authorization Act for Fiscal Year
2016 (Public Law 116-92; 10 U.S.C.3453 note) is amended by striking
``simplified acquisition threshold'' and inserting ``threshold
specified in section 3571(a) of this title''.
(k) Examination of Records of Contractors.--Section 3841(g)(2) of
title 10, United States Code, is amended by striking ``simplified
acquisition threshold'' and inserting ``threshold specified in section
3571(a) of this title''.
(l) Contractors Inventory Accounting Systems: Standards.--Section
3845(b) of title 10, United States Code, is amended by striking
``simplified acquisition threshold'' and inserting ``threshold
specified in section 3571(a) of this title''.
(m) Requests for Equitable Adjustment or Other Relief.--Section
3862 of title 10, United States Code, is amended--
(1) in subsection (a), by striking ``simplified acquisition
threshold'' and inserting ``threshold specified in section
3571(a) of this title''; and
(2) in subsection (d)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
(n) Expenditure of Appropriations: Limitation.--Section 4651(b) of
title 10, United States Code, is amended by striking ``as defined in
section 134 of title 41'' and inserting ``as defined in section 3571(a)
of this title''.
(o) Prohibition Against Doing Business With Certain Offerors or
Contractors.--Section 4654(d) of title 10, United States Code, is
amended by striking ``as defined in section 134 of title 41'' and
inserting ``as defined in section 3571(a) of this title''.
(p) Prohibition of Contractors Limiting Subcontractor Sales
Directly to the United States.--Section 4655(c) of title 10, United
States Code, is amended by striking ``as defined in section 134 of
title 41'' and inserting ``as defined in section 3571(a) of this
title''.
(q) Prohibition on Persons Convicted of Defense-Contract Related
Felonies and Related Criminal Penalty on Defense Contractors.--Section
4656(a)(4)(A) of title 10, United States Code, is amended by striking
``as defined in section 134 of title 41'' and inserting ``as defined in
section 3571(a) of this title''.
(r) Prohibition on Contracting With Entities That Comply With the
Secondary Arab Boycott of Israel.--Section 4659(b) of title 10, United
States Code, is amended by striking ``as defined in section 134 of
title 41'' and inserting ``as defined in section 3571(a) of this
title''.
(s) Supplies: Identification of Supplier and Sources.--Section
4753(b)(3) of title 10, United States Code, is amended striking ``as
defined in section 134 of title 41'' and inserting ``as defined in
section 3571(a) of this title''.
(t) Miscellaneous Limitations on the Procurement of Goods Other
Than United States Goods.--Section 4864 of title 10, United States
Code, is amended in paragraph by striking ``simplified acquisition
threshold'' each place it appears and inserting ``threshold specified
in section 3571(a) of this title''.
SEC. 308. MODIFICATIONS TO COMMERCIAL SOLUTIONS OPENINGS.
Section 3458 of title 10, United States Code, is amended--
(1) by amending subsection (a) to read as follows:
``(a) Authority.--The Secretary of Defense and the Secretaries of
the military departments may acquire commercial products, commercial
services, and nondevelopmental items through a competitive selection of
proposals resulting from a general solicitation and the peer review,
technical review, or operational review (as appropriate) of such
proposals, and may issue, without further justification, follow-on
contract awards or agreements, including sole source awards or
agreements, to the recipient.'';
(2) by redesignating subsection (c), (d), and (e) as
subsections (d), (e), and (h), respectively;
(3) by inserting after subsection (b) the following new
subsection:
``(c) Sole-Source Follow-On.--The Secretary of Defense and the
Secretaries of the military departments may issue, without further
justification, follow-on contract awards or agreements, including sole
source awards or agreements, to a recipient competitively selected
under subsection (a).'';
(3) in paragraph (1) of subsection (d), as redesignated by
paragraph (2) of this section, by striking ``the Under
Secretary of Defense for Acquisition and Sustainment or the
relevant service acquisition executive'' and inserting ``the
head of the contracting activity (or the head of the
contracting activity's designated delegate)'';
(4) in subsection (e), as so redesignated--
(A) by striking ``(1)''; and
(B) by striking paragraph (2); and
(5) by inserting after such subsection, as so redesignated,
the following new subsections:
``(f) Limitation on Delegations of Authority.--The authority of the
head of the contracting activity under subsection (d)(1) may be
delegated only to an officer or employee who--
``(1) if a member of the Armed Forces, is a general, or
flag officer; or
``(2) if a civilian, is serving in a position with a grade
under the General Schedule (or any other schedule for civilian
officers or employees) that is comparable to or higher than the
grade of brigadier general or rear admiral (lower half).
``(g) Nontraditional Vehicle.--(1) The Secretary of Defense shall
establish an open topic and enduring general solicitation described in
subsection (a) for each systems command, science and technology
reinvention laboratory, and portfolio acquisition executive.
``(2) Only nontraditional defense contractors (as defined in
section 3014 of this title) may submit proposals and be eligible for an
award or agreement under the general solicitations established pursuant
to paragraph (1).
``(3) The preferred model for developing and producing operational
military capabilities using general solicitations in paragraph (1)
shall be the urgent capability acquisition, middle tier of acquisition,
software acquisition, or services acquisition pathways of the
Department of Defense Adaptive Acquisition Framework described in
Department of Defense Instructions 5000.85 and 5000.2.''.
SEC. 309. MODIFICATIONS TO OTHER TRANSACTIONS.
(a) In General.--Section 4022 of title 10, United States Code, is
amended--
(1) in subsection (a)--
(A) by amending paragraph (2) to read as follows:
``(2) The authority of this section may be exercised for a
transaction for a prototype project, or for a transaction for a follow-
on production contract or transaction that is awarded pursuant to
subsection (f) or (g), that is expected to cost the Department of
Defense in excess of $100,000,000 (including all options) only upon a
written determination that the requirements of subsection (d) will be
met by a head of the contracting activity, or, for the Defense Advanced
Research Projects Agency, the Defense Innovation Unit, or the Missile
Defense Agency, the director of the agency.''; and
(B) by amending paragraph (3) to read as follows:
``(3) The authority of the head of the contracting activity, the
director of the Defense Advanced Research Projects Agency, the director
of the Defense Innovation Unit, the director of the Missile Defense
Agency, or the senior procurement executive, as applicable, under
paragraph (2), may not be delegated.'';
(2) in subsection (e)--
(A) by amending paragraph (1) to read as follows:
``(1) The term `head of the contracting activity' means
those officials within the organization who have responsibility
for and manage an acquisition organization and usually hold
unlimited procurement authority.''; and
(B) by adding at the end the following new
paragraph:
``(6) The term `follow-on production' means a contract or
transaction that is intended to further develop, test, produce,
deploy, operate, or sustain a capability that was successfully
prototyped under the authority established in subsection
(a).'';
(3) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(4) by inserting after subsection (g) the following new
subsection:
``(h) Authority To Award a Production Transaction To Rapidly Field
an Existing Capability.--A production transaction may be awarded, with
or without the use of competitive procedures, to acquire emergent and
proven technologies and field production quantities of new or upgraded
systems that do not require additional development and have been
demonstrated in a relevant environment when the appropriate service or
component acquisition executive determines in writing that exceptional
circumstances justify the use of such a transaction to address a high
priority warfighter need.''.
SEC. 310. MODIFICATIONS TO COMMERCIAL PRODUCT AND COMMERCIAL SERVICE
DETERMINATIONS BY DEPARTMENT OF DEFENSE.
Section 3456 of title 10, United States Code, is amended by
striking subsections (a) through (c) and inserting the following new
subsections:
``(a) In General.--The Secretary of Defense shall create a default
determination that products and services acquired by the Department of
Defense are commercial and shall be acquired using commercial
procedures, and, to the maximum extent practicable, general
solicitation procedures under section 3458 of this title, unless
determined to be non-commercial by the Department of Defense
contracting officer.
``(b) Determinations Regarding the Non-Commercial Nature of
Products or Services.--A defense-unique development product or service
may not be procured if there is a commercial product or service, with
or without customization, that meets the minimum requirements of the
Department of Defense. In making a determination whether a particular
product or service offered by a contractor is non-commercial and does
not meet any definition for commercial products or commercial services,
a contracting officer of the Department of Defense shall submit a
written memorandum summarizing the determination for approval by the
head of contracting activity, prior to awarding the contract, and
provide it to the contractor or subcontractor offering the product or
service for which such determination is summarized in such memorandum.
The memorandum shall include--
``(1) a detailed justification why the product or
commercial service was determined to be noncommercial including
the results of market research; and
``(2) a signed determination by the program manager that
the requirement could not be reasonably changed to accommodate
a commercial product or commercial service.
``(c) Definition.--The term `defense-unique development' means a
Department of Defense-financed development, either to repurpose a
commercial product or solution or to develop a new product or solution,
to provide a defense-unique capability.''.
SEC. 311. COMMERCIALLY ACCEPTABLE TRANSACTION AND PAYMENT METHODS.
(a) In General.--In the case contracts using commercial procedures
or other transactions, procurement officials of the Department of
Defense shall use the most efficient, expeditious, and commercially
acceptable transaction and payment methods practicable.
(b) Government Purchase Card.--In the case of an acquisition of
commercial products, commercial services, nondevelopmental items, or
other transactions agreements up to $25,000,000, a procurement
official--
(1) may use the Government purchase card as a transaction
and payment method subject to the limitations of the
contracting officer's warrant and Department of Defense
purchase card procedures and limitations;
(2) may not use flexibly priced contracts that require the
application of the Government's cost accounting standards or
cost principles; and
(3) may not provide for advance payments or contract
financing greater than 15 percent.
(c) Micro-Purchase Procedures.--Nothing in this section shall
affect the ability of the Department of Defense to use micro-purchase
procedures for acquisitions below the micro-purchase threshold.
SEC. 312. TRANSPARENCY AND ACCOUNTABILITY OF CONTRACT AWARDS.
Notice of all contract awards or other agreements shall be publicly
posted within a reasonable period of time after the award or agreement
is made, taking into consideration operational security. The notice of
award or agreement shall include the purchase order or other record of
the transaction that includes quantities and prices of the individual
products or services being acquired.
SEC. 313. LIMITATION ON REQUIRED FLOWDOWN OF CONTRACT CLAUSES TO
SUBCONTRACTORS PROVIDING COMMERCIAL PRODUCTS OR
COMMERCIAL SERVICES.
(a) Contract Clauses Required in the Federal Acquisition
Regulation.--
(1) In general.--Chapter 247 of title 10, United States
Code, is amended by adding at the end the following new
section:
``Sec. 3459. Limitation on required flowdown of contract clauses to
subcontractors providing commercial products or
commercial services
``(a) In General.--The Secretary of Defense may not require that a
clause be included in a subcontract for commercial products and
services other than a clause required by a provision of law that is on
the list required by section 3452 of this title.
``(b) Single Clause Requirement.--The Secretary of Defense shall
provide for implementation of all provisions of law applicable to
subcontracts for commercial products and services through--
``(1) a single clause applicable to contracts for
commercial products and services; and
``(2) a single clause applicable to contracts for
noncommercial products and services.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 247 of title 10, United States Code, is
amended by inserting after the item relating to section 3458
the following new item:
``3459. Limitation on required flowdown of contract clauses to
subcontractors providing commercial
products or commercial services.''.
(b) Effective Dates.--
(1) In general.--The requirements under section 3459 of
title 10, United States Code, as added by subsection (a), shall
apply with respect to solicitations issued by the Department of
Defense after the end of the 120-day period beginning on the
date of the enactment of this Act.
(2) Regulations.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall amend
the Defense Federal Acquisition Regulation Supplement to
implement section 3459 of title 10, United States Code, as
added by subsection (a).
SEC. 314. MODIFICATIONS TO RELATIONSHIP OF OTHER PROVISIONS OF LAW TO
PROCUREMENT OF COMMERCIAL PRODUCTS AND COMMERCIAL
SERVICES.
Section 3452 of title 10, United States Code, is amended by
striking subsections (b) through (f) and inserting the following new
subsections:
``(b) Applicability of Defense-Unique Statutes to Contracts for
Commercial Products and Commercial Services.--(1) The Defense Federal
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on
government-wide acquisition regulations, policies, or executive orders
expressly required in law that are applicable to contracts for the
procurement of commercial products and commercial services by the
Department of Defense.
``(2) A provision of law or contract clause requirement described
in subsection (e) that is enacted after October 13, 1994, shall not be
included on the list of applicable provisions of law and contract
clause requirements required by paragraph (1) unless the Under
Secretary of Defense for Acquisition and Sustainment makes a written
determination that it would be in the best interest of the Department
of Defense to apply the provision or contract clause requirement to the
contract for the procurement of commercial products and commercial
services.
``(c) Applicability of Defense-Unique Statutes to Subcontracts for
Commercial Products and Commercial Services.--(1) The Defense Federal
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on
government-wide acquisition regulations, policies, or executive orders
expressly required in law that are applicable to subcontracts for the
procurement of commercial products and commercial services. A provision
of law or contract clause requirement properly included on the list
pursuant to paragraph (2) must apply to purchases of commercial
products and commercial services by the Department of Defense.
``(2) A provision of law or contract clause requirement described
in subsection (e) that is enacted after October 13, 1994, shall not be
included on the list of applicable provisions of law and contract
clause requirements required by paragraph (1) unless the Under
Secretary of Defense for Acquisition and Sustainment makes a written
determination that it would be in the best interest of the Department
of Defense to apply the provision or contract clause requirement to the
subcontract for the procurement of commercial products and commercial
services.
``(3) In this subsection, the term `subcontract'--
``(A) includes a transfer of commercial products and
commercial services between divisions, subsidiaries, or
affiliates of a contractor or subcontractor; and
``(B) does not include agreements entered into by a
contractor for the supply of commodities that are intended for
use in the performance of multiple contracts with the
Department of Defense and other parties and are not
identifiable to any particular contract.
``(4) This subsection does not authorize the waiver of the
applicability of any provision of law or contract clause requirement
with respect to any first-tier subcontract under a contract with a
prime contractor reselling or distributing commercial products and
commercial services of another contractor without adding value.
``(d) Applicability of Defense-Unique Statutes to Contracts for
Commercially Available, Off-the-Shelf Items.--(1) The Defense Federal
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on
government-wide acquisition regulations, policies, or executive orders
expressly required in law that are applicable to subcontracts for the
procurement of commercially available off-the-shelf items by the
Department of Defense.
``(2) A provision of law or contract clause requirement described
in subsection (e) that is enacted after October 13, 1994, shall not be
included on the list of applicable provisions of law and contract
clause requirements required by paragraph (1) unless the Under
Secretary of Defense for Acquisition and Sustainment makes a written
determination that it would be in the best interest of the Department
of Defense to apply the provision or contract clause requirement to the
procurement of commercially available off-the-shelf items.
``(e) Covered Provision of Law or Contract Clause Requirement.--A
provision of law or contract clause requirement referred to in
subsections (b)(2), (c)(2), and (d)(2) is a provision of law or
contract clause requirement that the Under Secretary of Defense for
Acquisition and Sustainment determines sets forth policies, procedures,
requirements, or restrictions for the procurement of property or
services by the Federal Government, except for a provision of law or
contract clause requirement that--
``(1) provides for criminal or civil penalties;
``(2) requires that certain articles be bought from United
States sources pursuant to section 4862 of this title, or
requires that strategic materials critical to national security
be bought from United States sources pursuant to section 4863
of this title; or
``(3) specifically refers to this section and provides
that, notwithstanding this section, it shall be applicable to
contracts for the procurement of commercial products and
commercial services.''.
SEC. 315. NONTRADITIONAL DEFENSE CONTRACTOR COMMERCIAL SOLUTIONS
OPENING.
Section 3458 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(j) Nontraditional Vehicle.--(1) The Secretary of Defense shall
establish consortia to conduct prototype projects and follow-on
production under the authority of section 4022 of this title for each
systems command and each portfolio acquisition executive.
``(2) Of the consortia established pursuant to paragraph (1), the
membership of the consortia shall be limited to nontraditional defense
contractors (as defined in section 3014 of this title).
``(3) The preferred model for developing and producing operational
military capabilities using the consortia in paragraph (1) shall be the
urgent capability acquisition, middle tier of acquisition, software
acquisition, or services acquisition pathways of the Department of
Defense Adaptive Acquisition Framework described in Department of
Defense Instruction 5000.2.''.
SEC. 316. PROGRAM MANAGEMENT OFFICE COMPETITION.
(a) Authorization.--Not later than April 1, 2025, the service and
component acquisition executives shall establish guidance requiring
separate program managers and contracting officers within the
Department of Defense to compete alternative prototypes for a program
with an independent down-select to determine the winner.
(b) Selection of Programs.--Each service and component acquisition
executive shall designate not less than three programs annually for use
of the procedures established under subsection (a).
(c) Selection of Personnel.--For each program selected under
subsection (b), the service or component acquisition executive shall
select not less than two separate program managers and contracting
officers who shall--
(1) assume management of distinct prime contractors that do
not share ownership from the same ultimate parent company;
(2) sign a tenure agreement through the end of the
competitive down-select under subsection (e); and
(3) be selected from existing personnel of the Department
of Defense.
(d) Prototype Phase.--Each program manager and contracting officer
selected under subsection (c) for a specific program shall be provided
equal funding and scheduling constraints to deliver a prototype
demonstration for the program requirement.
(e) Competitive Down-Select.--The service or component acquisition
executives, in coordination with operational test and evaluation
activities and the commanders of the combatant commands, shall--
(1) evaluate the prototypes delivered under subsection (d)
with direct input from military users;
(2) regard any program manager-approved deviation from the
program requirement under subsection (f)(2) to be valid; and
(3) select a winner eligible for a sole source follow-on
contract or other agreement under subsection (f)(1).
(f) Exemptions and Special Procedures.--
(1) Competitive procedures exemption.--Contracts awarded
under the procedures established in subsection (a) shall be
considered use of competitive procedures established for the
purposes of chapter 221 of this title.
(2) Joint capabilities integration and development system
exemption.--The requirement for the program under subsection
(b) shall be exempt from the Joint Capabilities Integration and
Development System and a program manager may deviate from the
requirement without additional approval.
(3) Test and evaluation master plan.--The program under
subsection (b) shall utilize a streamlined Test and Evaluation
Master Plan that must be submitted prior to the competitive
down-select phrase described in subsection (e).
(4) Acquisition strategy.--Each program manager and
contracting officer shall submit a streamlined acquisition
strategy of no more than 20 pages prior to the start of the
prototype phase under subsection (d).
(g) Delegation.--The service or component acquisition executive may
delegate the down-selection described in subsection (e) to personnel
other than personnel selected under subsection (c) or personnel that
may have a conflict of interest.
SEC. 317. MIDDLE TIER OF ACQUISITION FOR RAPID PROTOTYPING AND RAPID
FIELDING.
(a) In General.--Chapter 253 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 3602. Middle tier of acquisition for rapid prototyping and rapid
fielding
``(a) Guidance Required.--The Under Secretary of Defense for
Acquisition and Sustainment shall establish pathways as described under
subsection (b) to establish a process for conducting middle tier
acquisitions for programs or projects that are intended to be completed
in a period of two to five years.
``(b) Acquisition Pathways.--The Under Secretary of Defense for
Acquisition and Sustainment shall establish the following two
acquisition pathways:
``(1) Rapid prototyping.--The rapid prototyping pathway
shall provide for the use of innovative technologies to rapidly
develop fieldable prototypes to demonstrate new capabilities
and meet emerging military needs. The objective of an
acquisition program or project under this pathway shall be to
field a prototype that can be demonstrated in an operational
environment and provide for a residual operational capability
within five years of initiation.
``(2) Rapid fielding.--The rapid fielding pathway shall
provide for the use of proven technologies to field production
quantities of new or upgraded systems with minimal development
required. The objective of an acquisition program or project
under this pathway shall be to begin production within six
months and complete fielding within five years of initiation.
``(c) Expedited Process.--
``(1) In general.--Before using the authority under this
section, the Under Secretary shall develop a streamlined and
coordinated requirements, budget, and acquisition process that
results in the development of an approved requirement for each
acquisition program or project in a period of not more than six
months from the time that process is initiated. Programs of
projects carried out under the authority of this section shall
not be subject to the Joint Capabilities Integration and
Development System Manual and Department of Defense Directive
5000.01.
``(2) Rapid prototyping.--With respect to the rapid
prototyping pathway, the process described in paragraph (1)
shall include--
``(A) a merit-based process for considering
innovative technologies and new capabilities to meet
needs communicated the Joint Chiefs of Staff or the
combatant commanders;
``(B) a process for developing and implementing
acquisition and funding strategies for a program or
project to be carried out under such pathway;
``(C) a process for demonstrating and evaluating
the performance of fieldable prototypes developed
pursuant to such program or project in an operational
environment;
``(D) a process for transitioning successful
prototypes into new or existing acquisition programs
for production and fielding under the rapid fielding or
major capability acquisition pathway (as defined under
Department of Defense Instruction 5000.85 or successor
instruction); and
``(E) a process for iterating prototyping and
fielding within the rapid prototyping pathway that may
use a process described in paragraph (4)(E).
``(3) Rapid fielding.--With respect to the rapid fielding
pathway, the process described in paragraph (1) shall include--
``(A) a merit-based process for considering
innovative technologies and new capabilities to meet
needs communicated the Joint Chiefs of Staff or the
combatant commanders;
``(B) a process for developing and implementing
acquisition and funding strategies for a program or
project to be carried out under such pathway;
``(C) a process for demonstrating performance and
evaluating for current operational purposes and the
proposed products and technologies;
``(D) a process for considering lifecycle costs and
addressing issues of logistics support and system
interoperability; and
``(E) a process for identifying and exploiting
opportunities to use the rapid fielding pathway to
reduce total ownership costs.
``(4) Streamlined procedures.--The process described in
paragraph (1) shall provide for all of the following
streamlined procedures:
``(A) A program manager shall be provided staff
positions for a technical staff, including experts in
business management, cost estimation, contracting,
auditing, engineering, certification, testing, cyber,
and logistics, to enable the program manager to manage
the program or project without the technical assistance
of another element of the Department of Defense to the
maximum extent practicable.
``(B) A program manager shall, in coordination with
the users of the good or service to be acquired under
such a program or project and the test community, have
the authority to make trade-offs among lifecycle costs,
requirements, and schedules to meet the goals of the
program or project.
``(C) Each service acquisition executive, acting in
coordination with the defense acquisition executive,
may serve as the decision authority for a program or
project for which the authority under this section is
used or shall delegate such decision authority.
``(D) A program manager may seek an expedited
waiver from any regulatory requirement, or in the case
of a statutory requirement, a waiver from Congress,
that the program manager determines adds cost,
schedule, or performance delays with little or no value
to the management of such program or project.
``(E) If an operational capability is demonstrated
for a program or project for which the authority under
this section is used, the appropriate service
acquisition executive may permit continuous iterative
prototyping and fielding under the same program or
project for an unlimited number of subsequent periods,
where each period is intended to be five years.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 253 of title 10, United States Code, is amended by inserting
after the item relating to section 3601 the following new item:
``3602. Middle tier of acquisition for rapid prototyping and rapid
fielding.''.
(c) Repeal of Superseded Authority.--Section 804 of the National
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 3201 note prec.) is repealed.
(d) Conforming Amendments.--
(1) Section 3601 of title 10, United States Code, is
amended--
(A) in subsection (a)--
(i) in paragraph (1)(B), by striking
``section 804 rapid acquisition pathway'' and
inserting ``rapid acquisition pathway''; and
(ii) by amending paragraph (2) to read as
follows:
``(2) Rapid acquisition pathway defined.--In this section,
the term `rapid acquisition pathway' means the rapid
prototyping or the rapid fielding acquisition pathway
authorized under section 3602 of this title.'';
(B) in subsection (b)(4), by striking ``the
guidance developed under section 804(a) of the National
Defense Authorization Act for Fiscal Year 2016 (Public
Law 114-92; 10 U.S.C. 3201 note prec.)'' and inserting
``section 3602 of this title''; and
(C) in subsection (c), by striking ``section 804
rapid acquisition pathway'' each place it appears and
inserting ``rapid acquisition pathway''.
(2) Section 4201(b)(1) of title 10, United States Code, is
amended by striking ``section 804 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 3201 note prec.)'' and inserting ``section 3602 of this
title''.
(3) Section 4324(d)(5)(B) of title 10, United States Code,
is amended by striking ``section 804 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 2302 note)'' and inserting ``section 3602 of this
title''.
(4) Section 4423(e) of title 10, United States Code, is
amended by striking ``section 804 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 2302 note)'' and inserting ``section 3602 of this
title''.
(5) Section 810(a) of the National Defense Authorization
Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4067
note) is amended by striking ``section 804 of the National
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-
92; 10 U.S.C. 3201 note prec.)'' and inserting ``section 3602
of title 10, United States Code''.
(6) Section 1608(e) of the National Defense Authorization
Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 2271
note) is amended by striking ``section 804 of the National
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-
92; 10 U.S.C. 3201 note prec.)'' and inserting ``section 3602
of title 10, United States Code''.
(7) Section 807(e)(4) of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 10 U.S.C. 9081 note) is amended by striking
``section 804 of the National Defense Authorization Act for
Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note)'' and
inserting ``section 3602 of title 10, United States Code''.
(8) Section 884(c)(2)(E) of the National Defense
Authorization Act for Fiscal Year 2017 (Public Law 114-328; 10
U.S.C. 4291 note prec.) is amended by striking ``section 804 of
the National Defense Authorization Act for Fiscal Year 2016
(Public Law 114-92; 10 U.S.C. 2302 note)'' and inserting
``section 3602 of title 10, United States Code''.
SEC. 318. REVISION AND CODIFICATION OF SOFTWARE ACQUISITION PATHWAYS.
(a) In General.--Chapter 253 of title 10, United States Code, as
amended by section 318, is further amended by adding at the end the
following new section:
``Sec. 3603. Software acquisition pathways
``(a) Software Acquisition and Development Pathways.--The Secretary
of Defense shall establish pathways as described under subsection (b)
to provide for the efficient and effective acquisition, development,
integration, and timely delivery of software and covered hardware.
``(b) Pathways.--The Secretary of Defense may establish as many
pathways under this section as the Secretary determines appropriate and
shall establish the following pathways:
``(1) Applications.--The applications pathway shall provide
for the use of rapid development and implementation of
applications and other software or software improvements
operated by the Department of Defense, which may include
applications and associated procurement of covered hardware
(including modifications of a type not customarily available in
the commercial marketplace to meet Department requirements),
commercially available cloud computing platforms, and other
nondevelopmental items.
``(2) Embedded systems.--The embedded systems pathway shall
provide for the rapid development and insertion of upgrades and
improvements for software and covered hardware embedded in
weapon systems and other hardware systems unique to the
Department of Defense.
``(c) Requirements for Pathways.--A pathway established under this
section shall provide for the use of proven technologies and solutions
to continuously engineer and deliver capabilities for software and
covered hardware.
``(d) Considerations for Use of Authority.--In using the authority
under this section, the Secretary shall consider how such use will--
``(1) initiate the engineering of new software capabilities
quickly, and, if applicable, the integration of such
capabilities into covered hardware;
``(2) demonstrate the viability and effectiveness of such
capabilities for operational use not later than one year after
the date on which funds are first obligated to acquire or
develop software; and
``(3) allow for the continuous updating and delivery of new
capabilities not less frequently than annually to iteratively
meet a user need.
``(e) Treatment Not as Major Defense Acquisition Program.--Software
and covered hardware acquired or developed using the authority under
this section shall not be treated as a major defense acquisition
program for purposes of section 4201 of this title.
``(f) Risk-Based Approach.--The Secretary of Defense shall use a
risk-based approach for the consideration of innovative technologies
and new capabilities for software and covered hardware to be acquired
or developed under this authority to meet needs communicated by the
Joint Chiefs of Staff or the combatant commanders.
``(g) Expedited Process.--
``(1) In general.--A pathway established under this section
shall provide for--
``(A) a streamlined and coordinated requirements,
budget, and acquisition process to support rapid
fielding of software applications and of software
upgrades to embedded systems for operational use in a
period of not more than one year from the time that the
process is initiated; and
``(B) continuous engagement with the users of
software and covered hardware to support--
``(i) engineering activities of the
Department of Defense; and
``(ii) delivery of software and covered
hardware for operational use in periods of not
more than one year.
``(2) Expedited software requirements process.--
``(A) Inapplicability of joint capabilities
integration and development system manual.--Software
and covered hardware acquisition or development
conducted under the authority of this section shall not
be subject to the Joint Capabilities Integration and
Development System Manual.
``(B) Inapplicability of defense acquisition system
directive.--Software and covered hardware acquisition
or development conducted under the authority of this
section shall not be subject to Department of Defense
Directive 5000.01.
``(h) Elements.--In implementing a pathway established under the
authority of this section, the Secretary shall tailor streamlined
policies and processes relating to--
``(1) approval initial user needs statements and user
agreements;
``(2) establishing and maintaining a prioritized list of
work for development;
``(3) engaging with product users on a regular basis;
``(4) approving acquisition strategies;
``(5) awarding contracts;
``(6) iteratively developing, integrating, testing, and
fielding capability; and
``(7) ensuring the delivery of cyber secure systems.
``(i) Definitions.--In this section:
``(1) Covered hardware.--The term `covered hardware' means
hardware--
``(A) that is a commercial product (as defined in
section 103 of title 41) or a nondevelopmental item;
and
``(B) in which software acquired under this section
is embedded.
``(2) Nondevelopmental item.--The term `nondevelopmental
item' has the meaning given the term in section 110 of title
41.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 253 of title 10, United States Code, as amended by section 318,
is further amended by inserting after the item relating to section 3602
the following new item:
``3603. Software acquisition pathways.''.
(c) Repeal of Superseded Authority.--
(1) Repeal.--Section 800 of the National Defense
Authorization Act for Fiscal Year 2020 (Public Law 116-92; 10
U.S.C. 4571 note) is repealed.
(2) Conforming amendment.--Section 807(e)(1) of the William
M. (Mac) Thornberry National Defense Authorization Act for
Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 9081 note) is
amended by striking ``section 800 of the National Defense
Authorization Act for Fiscal Year 2020 (Public Law 116-92; 133
Stat. 1478; 10 U.S.C. 2223a note)'' and inserting ``section
3603 of title 10, United States Code''.
SEC. 319. MODIFICATIONS TO STEPS TO IDENTIFY AND ADDRESS POTENTIAL
UNFAIR COMPETITIVE ADVANTAGE OF TECHNICAL ADVISORS TO
ACQUISITION OFFICIALS.
(a) Guidance Required.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall issue
guidance on steps to identify and prevent the potentially unfair
competitive advantage of entities providing technical advice to
acquisition officials in the award of research and development work by
such officials.
(b) Definitions.--For the purposes of this section--
(1) the term ``potentially unfair competitive advantage''
means unequal access to acquisition officials responsible for
award decisions or allocation of resources or to acquisition
information relevant to award decisions or allocation of
resources; and
(2) the term ``entity providing technical advice to
acquisition officials'' means a science and technology
reinvention laboratory or a federally funded research and
development center or another nonprofit entity that provides
systems engineering and technical direction, participates in
technical evaluations, helps prepare specifications or work
statements, or otherwise provides technical advice to
acquisition officials on the conduct of defense acquisition
programs.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on the policies
established under this section. The report shall--
(1) describe how any employee or assigned personnel of an
entity defined in subsection (b)(2) will be--
(A) prevented from performing acquisition
functions, including the development, award, or
administration of contracts of the program offices;
(B) prevented from formulating, overseeing, or
evaluating performance on developmental or operational
testing, or experimentation; and
(C) allowed to request a waiver to provide
technical advice to acquisition officials if--
(i) the individual has never supported a
product, service, or development of a modular
open system architecture that may compete or be
required by the acquisition effort of the
acquisition official;
(ii) a process is established to report any
potentially unfair competitive advantage
violations by such an employee or assigned
personnel to the program manager or contracting
officer as soon as it is identified;
(iii) a process is established to maintain
effective oversight to verify compliance with
this section; and
(iv) appropriate disciplinary actions are
established in the case of employees or
assigned personnel who fail to comply with
policies established pursuant to this section;
and
(2) provide information on pass-through charges that the
science and technology reinvention laboratories charge
acquisition officials when receiving funded work from
Department of Defense program offices, including the values
charged by each science and technology reinvention laboratory
and the ultimate uses of the funds.
(d) Repeal of Obsolete Authority.--The National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat.
942) is amended by striking section 881.
SEC. 320. MODIFICATIONS TO PROCUREMENT FOR EXPERIMENTAL PURPOSES.
Section 4023 of title 10, United States Code, is amended--
(1) in subsection (a), by striking ``ordnance, signal,
chemical activity, transportation, energy, medical, space
flight, telecommunications, and aeronautical supplies,
including parts and accessories, and designs thereof,'' and
inserting ``demonstrations, prototypes, products, supplies,
parts, accessories, auxiliary services, and design for defense-
related articles'';
(2) in subsection (b)--
(A) by inserting ``or modified'' after ``may be
made''; and
(B) by inserting ``prototyping,'' after ``greater
than necessary for''; and
(3) by adding at the end the following new subsection:
``(c) Follow-On Production Contracts or Transactions.--Purchases
under this section may allow for follow-on production contracts or
transactions without the use of competitive procedures or further
justification, even if explicit notification was not provided, if a
combatant command submits a written determination that the purchased
item successfully completed the experiment and intends to field the
item.''.
SEC. 321. CONSUMPTION-BASED SOLUTIONS.
(a) Authority.--Chapter 247 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 3459. Authority to acquire consumption-based solutions
``(a) Authority.--The Secretary of Defense and the Secretaries of
the military departments may acquire technology-supported capabilities
through consumption-based solutions.
``(b) Guidance Required.--The Secretary of Defense shall amend the
Defense Federal Acquisition Regulation Supplement to implement the
authority under subsection (a), including--
``(1) creating a new subcategory of services under part 37
of the Federal Acquisition Regulation, entitled `Consumption-
based solutions' that--
``(A) is any combination of hardware, equipment,
software, labor, or services that together provides a
seamless capability;
``(B) has the ability to be metered and billed
based on actual usage;
``(C) has predetermined pricing at fixed price
units;
``(D) requires the awardee to notify the Department
of Defense contracting officer when consumption under
the contract reaches 75 percent and 90 percent of the
funded amount, respectively, of the contract; and
``(E) treats modifications to a contract entered
into under the authority established in subsection (a)
to add new features or capabilities in an amount less
than or equal to 25 percent of the total value of such
contract as competitive procurements under chapter 221
of this title; and
``(2) creating a new contract type under part 16 of the
Federal Acquisition Regulation, entitled `Fixed-price resource
units' that establishes fixed price per unit of measure as the
preferred contract type for the authority established under
subsection (a).
``(c) Funding.--Amounts authorized to be appropriated for
acquisitions using the authority under subsection (a)--
``(1) may be used for expenses for--
``(A) research, development, test and evaluation;
``(B) procurement;
``(C) production;
``(D) modification; and
``(E) operation and maintenance; and
``(2) may be used to enter into incrementally funded
contracts or other agreements.
``(d) Consumption-Based Solution Defined.--In this section, the
term `consumption-based solution' means a model under which a
technology-supported capability is provided to the Department of
Defense and may utilize any combination of software, hardware or
equipment, data, and labor or services that provides a capability that
is metered and billed based on actual usage at fixed price units.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 247 of title 10, United States Code, is amended by inserting
after the item relating to section 3458 the following new item:
``3459. Authority to acquire consumption-based solutions.''.
TITLE IV--PROMOTION OF COMPETITION IN THE DEFENSE INDUSTRIAL BASE
SEC. 401. PROGRAM FOR ENHANCING SECONDARY SOURCES AND SUPPLY CHAIN
MANAGEMENT FOR THE DEPARTMENT OF DEFENSE.
(a) Program Established.--The Secretary of Defense shall establish
policy, regulations, and guidance to enhance the creation and
utilization of secondary sources for Department of Defense systems. The
program shall--
(1) define qualification, testing, evaluation, and
airworthiness determinations for secondary sources;
(2) create prepackaged templates, including Source Approval
Request (SAR) and Parts Manufacturer Approval (PMA), for
various categories of parts and systems; and
(3) address part availability problems, obsolescence
management, and supply chain cost inflation.
(b) Objectives.--The objectives of the program established under
subsection (a) are--
(1) to develop a streamlined process for secondary source
qualification that can be rapidly deployed in both wartime and
peacetime conditions;
(2) to ensure that the qualification process during wartime
can be completed within weeks, rather than months or years, to
maintain operational readiness and support rapid deployment;
and
(3) to maintain a robust and flexible supply chain that
adopt advanced manufacturing techniques and can quickly adapt
to changing conditions and requirements.
(c) Templates.--The Secretary of Defense shall develop a process
and detailed templates for qualification, testing, certification, and
airworthiness determinations as follows:
(1) Not later than 180 days after the date of the enactment
of this Act, the establishment of policies implementing the
process to encourage and support the delegation of material
review board authorities, processes, and approvals to the
contractor or subcontractor (at any tier) with respect to non-
safety critical items for industrial capabilities described in
subsection (b).
(2) The implementation, where feasible and advisable, of
commercial processes and procedures, including forms and
templates such as Sources Approval Requests and Alternative
Offers, for the evaluation and qualification of vendors,
including manufacturers and distributors, that are part of the
program established under subsection (a).
(3) The implementation of processes and, if necessary, the
development of military specifications or other similar
requirements documents to pre-qualify vendors to supply safety
critical items or mission critical items for industrial
capabilities based on--
(A) an assessment of the vendor's material and
process controls to assure conformance to specification
and contractual requirements; and
(B) audit and inspection requirements of the
Department of Defense.
(4) The review of test reports and, not later than 45 days
after a test is completed, notification of approval decisions
to requesting member of the acquisition workforce (as defined
in section 101 of title 10, United States Code).
(5) The establishment of processes for qualification of
safety critical or flight critical end items produced through
advanced processes and technologies, such as additive
manufacturing.
(6) The consideration for evaluation and qualification of
alternative material types that could be viable replacements or
interchangeable sources of material using streamlined
requirements;
(7) Where appropriate, the development of processes for
qualification of a system or subsystem by a designated approval
authority within a military department in order to avoid the
need for qualification of individual parts while ensuring the
performance of parts and the interactions of the parts in the
system or subsystem.
(8) The development of pathways to streamline and
consolidate the approval authority of the process established
pursuant to subsection (a).
(9) Minimization of the need for military-unique
specifications and test procedures, and when required, the use
of procedures that--
(A) detail the performance or functions required by
the item requiring qualification and do not constrain
implementation of such process; and
(B) is completed upon request by a member of the
acquisition workforce--
(i) not later than 30 days after the date
of such request, for unmanned items, non-safety
critical items, or non-mission critical items;
and
(ii) not later than 180 days after the date
of such request, for safety critical items or
mission critical items.
(d) Transition Planning.--The program established under subsection
(a) shall incorporate ASME Y.14.24 Original Design Activity (ODA) and
Current Design Activity (CDA) transition planning and templates,
including--
(1) standardized templates for transitioning from ODA to
CDA; and
(2) comprehensive guidelines for planning and executing
transitions between ODA and CDA.
(e) Part Availability and Obsolescence Management.--The pilot
program shall include strategies--
(1) to implement improved inventory tracking systems;
(2) to identify and pre-qualify alternative sources for
critical parts, including Federal Aviation Administration-
certified parts; and
(3) to develop proactive obsolescence management
strategies.
(f) Cost Management.--The program established under subsection (a)
shall include measures--
(1) to conduct regular benchmarking of Department of
Defense part costs against commercial sector costs; and
(2) to perform cost-benefit analyses to identify
inefficiencies and areas for cost reduction.
(g) Business Rules and Waiver Procedures.--The program established
under subsection (a) shall establish more effective exception or waiver
procedures for business rules. These procedures shall--
(1) allow for alternative design reviews; and
(2) designate activities and roles in decision-making
processes to ensure accountability and best value outcomes.
(h) Licensing Royalty Plan.--The program established under
subsection (a) shall establish a licensing royalty plan similar to the
intellectual property (IP) rights royalty payments made during World
War II by the predecessors to the Department of Defense, including--
(1) fair and reasonable royalty payments to ODAs and CDAs
for the use of intellectual property necessary for secondary
source development; and
(2) mechanisms to ensure timely and equitable distribution
of royalty payments.
(i) Workforce Development.--The Secretary of Defense shall
establish an engineering workforce development program to provide
hands-on exposure for government engineers, manufacturing or repair
staff, and software developers. The program shall--
(1) equip participants with the skills necessary to
effectively plan and execute secondary sourcing initiatives;
(2) include training on qualification, testing, evaluation,
and airworthiness determinations; and
(3) provide opportunities for practical experience in
working with secondary sources and supply chain management.
(j) Cost Savings Exemption.--Activities under the program
established under subsection (a) shall not require a determination of
cost savings be met before creating an alternative source and obtaining
technical data or software needed for replenishment parts or software,
including by reverse engineering. The purpose of the exemption is to
enable wartime logistics, point-of-use manufacturing at operating
locations, alternative sourcing for suppliers or original equipment
manufacturers (OEMs) unable to meet demand within accelerated wartime
or contingency logistics demand schedules, or when mission readiness
rates are adversely impacted, or when value engineering determines that
alternative sourcing is a better option than OEM or current supplier
value.
(k) Level of Repair Analysis.--The program established under
subsection (a) shall include Level of Repair Analysis (LORA) that
considers non-economic factors such as battle damage repair, logistics
under attack, and supply chain disruption factors in determining repair
or replacement decisions.
(l) Exemptions From Certain Investigations.--Items approved under
the process developed pursuant to subsection (a) that do not present a
safety risk to human life--
(1) shall be exempt from Class A and Class B mishap
investigations, as defined by the Secretary of Defense; and
(2) shall be subject to streamlined investigation
procedures, as determined by the Secretary of Defense, with
respect to a mishap.
(m) Liability Protections.--Approval authorities responsible for
the process developed pursuant to subsection (a) shall not be held
liable by the Department of Defense for mishaps with respect to items
approved pursuant to the process, absent evidence of willful
misconduct, gross negligence, or intentional fraud.
SEC. 402. ADMINISTRATION OF THE INDUSTRIAL EXPANSION PROGRAM.
(a) Requirement.--The Secretary of Defense shall establish an
industrial expansion program that funds activities under subsection (b)
according to the prioritization of property or services under
subsection (c).
(b) Activities Permitted.--The industrial expansion program
established under subsection (a) shall include the following
activities:
(1) The development, updating, or refinement of military
specifications, to include military details, military
performance specifications, and technical publications, and
test procedures.
(2) Activities associated with the mitigation of
diminishing manufacturing sources and material shortages.
(3) Reverse engineering or re-engineering property to
create a technical data package or manufacturing capabilities.
(4) Review and validation of technical data rights,
ordering, inspection, and enforcement, including the challenge
of improper markings and rights assertions.
(5) Qualification, certification, testing, and associated
oversight.
(6) Advertising, loaning, or transferring required
replenishment parts or data to potential sources of supply.
(7) Procurement of organic equipment and development of
organic information systems associated with activities
described in paragraphs (1) through (6) that support
capabilities described under section 2464 of title 10, United
States Code.
(8) Life-of-type buys if there is reasonable expectation
that a manufacturing source will have to be created and
qualified within the next three years.
(c) Prioritization.--The Secretary of Defense shall ensure that
funding for activities under subsection (b) shall be prioritized for
the following needs:
(1) Shortages in sustainment impacting a system's mission
capable rates below required objectives.
(2) Items that are sequence critical or on the driving path
for production schedules.
(3) Items that have no qualified sources of supply.
(4) Items for which a contracting officer cannot ascertain
a fair and reasonable price, or for which a contractor has
refused to provide cost or pricing data.
(5) Items required to retain core logistics capabilities.
(6) Items identified by combatant commanders as critical
for point-of-use manufacturing under conditions of contested
logistics.
(d) Expenditure Amounts.--The Department of Defense shall expend in
connection with the program required under subsection (a)--
(A) not less than 2 percent of its extramural
procurement and sustainment budget in each of fiscal
years 2026 and 2027; and
(B) not less than 3 percent of its extramural
procurement and sustainment budget in fiscal year 2028
and each fiscal year thereafter.
(e) Exemptions.--The requirements, approvals, and order of
preference in subpart 217.75 of the Defense Federal Acquisition
Regulation Supplement and related procedures and guidance shall not
apply.
(f) Preference.--The prototype authority under section 4022 of
title 10, United States Code, shall be the preferred mechanism for
procuring activities under the program required under subsection (a),
including with respect to a transition to production.
(g) Definitions.--In this section:
(1) Extramural budget.--The term ``extramural budget''
means the sum of the total obligations minus amounts obligated
for such activities by employees of the agency in or through
Government-owned, Government-operated facilities, except that
for the Department of Energy it shall not include amounts
obligated for atomic energy defense programs solely for weapons
activities or for naval reactor programs.
(2) Reverse engineering.--The term ``reverse engineering''
means a process by which parts are examined and analyzed to
determine how they were manufactured, for the purpose of
developing a complete technical data package, typically for
purposes of enabling manufacture of an item by new sources.
TITLE V--DEFENSE BUDGETING PROCESSES
SEC. 501. REVIEW OF STRUCTURE OF THE BUDGET AND APPROPRIATIONS FOR
FUNDING OF DEFENSE ACQUISITION PROGRAMS.
(a) Review Required.--The Secretary of Defense shall conduct a
comprehensive review of the appropriation account, budget line item,
and program element structure for the budget of the Department of
Defense, with the objectives of--
(1) identifying cases in which management of a program or
system has been made more difficult due to the program or
system having been subdivided into multiple budget line items
or program elements;
(2) identifying cases in which the budget line items or
program elements for multiple programs or systems intended to
provide a common set of capabilities, missions, or functions
could be combined into a single budget line item or a single
program element;
(3) identifying steps that could be taken to address the
cases identified under paragraphs (1) and (2) including a
cross-walk of the existing budget structure to the new
structure;
(4) alignment, to the maximum extent possible, of budget
line items or program elements to portfolio acquisition
executives or similar portfolio managers; and
(5) removal of appropriation titles for research,
development, test and evaluation; procurement; and operation
and maintenance, and reorganization based on military service
and major capability and activity areas as recommended by the
final report of the Commission on Planning, Programming,
Budgeting, and Execution Reform.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
congressional defense committees a report providing the results of the
review under subsection (a), together with the Secretary's plan for any
changes to be made within the Department of Defense resulting from the
review and such recommendations for legislative action as the Secretary
considers appropriate as a result of the review.
SEC. 502. MODIFICATIONS TO THE DEFENSE MODERNIZATION ACCOUNT.
Section 3136 of title 10, United States Code, is amended--
(1) in subsection (b)(1), by striking ``out of savings
derived from such projects'';
(2) in subsection (e)--
(A) by striking paragraphs (1) and (2); and
(B) by striking ``(3) Funds'' and inserting
``Funds'';
(3) in subsection (f), by striking paragraph (3); and
(4) in subsection (h)(2)--
(A) in subparagraph (A), by inserting the semicolon
and inserting ``; and'';
(B) in subparagraph (B), by striking the semicolon
and inserting a period; and
(B) by striking subparagraphs (C) and (D).
SEC. 503. AMENDMENTS AND REPEALS TO BUDGETARY REQUIREMENTS FOR DEFENSE
ACQUISITION.
(a) Amendments to Existing Law.--
(1) Defense intelligence business management systems.--
Section 1624 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232; 132
Stat. 2120) is amended by striking subsection (b).
(2) Assignment of certain budget control responsibilities
to commander of united states cyber command.--Section
1507(c)(2) of the National Defense Authorization Act for Fiscal
Year 2022 (Public Law 117-81; 10 U.S.C. 167b note) is amended--
(A) by striking subparagraphs (C) and (D); and
(B) by redesignating subparagraph (E) as
subparagraph (C).
(3) Limitation and reporting requirements for unmanned
carrier-launched surveillance and strike system program.--
Section 213 of the National Defense Authorization Act for
Fiscal Year 2014 (Public Law 113-66; 10 U.S.C. 22 note) is
amended--
(A) by striking subsection (c); and
(B) by redesignating subsection (d) as subsection
(c).
(4) Body armor procurement.--Section 141 of the National
Defense Authorization Act for Fiscal Year 2010 (Public Law 111-
84; 10 U.S.C. 221 note) is amended to read as follows:
``SEC. 141. BODY ARMOR PROCUREMENT.
``The Secretary of Defense shall ensure that body armor is procured
using funds authorized to be appropriated by this title.''.
(5) Rapid response to emergent technology advancements or
threats.--Section 229(c)(2) of the National Defense
Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10
U.S.C. 3601 note) is amended by striking subparagraph (C).
(6) Annual primary prevention research agenda.--Section
549A of the National Defense Authorization Act for Fiscal Year
2022 (Public Law 117-81; 10 U.S.C. 1561 note) is amended by
striking subsection (d).
(7) Explosive ordnance disposal defense program.--Section
2284 of title 10, United States Code, is amended--
(8) by striking subsection (c); and
(9) by redesignating subsection (d) as subsection (c).
(b) Repeals of Existing Law.--
(1) In general.--The following provisions are hereby
repealed:
(A) Evaluation and assessment of the distributed
common ground system.--Section 219 of the National
Defense Authorization Act for Fiscal Year 2013 (Public
Law 113-66; 10 U.S.C. 221 note).
(B) Weapon system component or technology prototype
projects: display of budget information.--Section 4421
of title 10, United States Code.
(C) Assessing capabilities to counter adversary use
of ransomware, capabilities, and infrastructure.--
Section 1510 of the National Defense Authorization Act
for Fiscal Year 2022 (117-81; 135 Stat. 2036).
(D) Separate program elements required for research
and development of joint light tactical vehicle..--
Section 213 of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-
383; 10 U.S.C. 221 note).
(E) Separate program elements required for research
and development of individual body armor and associated
components.--Section 216 of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-
84; 10 U.S.C. 221 note).
(F) Separate procurement and research, development,
test, and evaluation line items and program elements
for the f-35b and f-35c joint strike fighter
aircraft.--Section 217 of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-
84; 10 U.S.C. 221 note).
(G) Separate program elements required for
significant systems development and demonstration
projects for armored systems modernization program.--
Section 214 of the National Defense Authorization Act
for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 221
note).
(H) Ballistic missile defense programs: program
elements.--Section 223 of title 10, United States Code.
(I) Acquisition accountability reports on the
ballistic missile defense system.--Section 225 of title
10, United States Code.
(J) Programs for combating terrorism: display of
budget information.--Section 229 of title 10, United
States Code.
(K) POW/MIA activities: display of budget
information.--Section 234 of title 10, United States
Code.
(L) Personal protection equipment procurement:
display of budget information.--Section 236 of title
10, United States Code.
(M) Embedded mental health providers of the reserve
components: display of budget information.--Section 237
of title 10, United States Code.
(N) Cyber mission forces: program elements.--
Section 238 of title 10, United States Code.
(O) Certain intelligence-related programs: budget
justification materials.--Section 239b of title 10,
United States Code.
(P) Cooperative ballistic missile defense
program.--Section 233 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 10 U.S.C. 221 note).
(Q) Budgeting of department of defense relating to
operational energy improvement.--Section 322 of the
William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (Public Law 116-
283; 10 U.S.C. 221 note).
(R) Budgeting of department of defense relating to
extreme weather.--Section 328 of the National Defense
Authorization Act for Fiscal Year 2020 (Public Law 116-
92; 10 U.S.C. 221 note).
(S) System management plan and matrix for the f-35
joint strike fighter aircraft program.--Section 122 of
the Ike Skelton National Defense Authorization Act for
Fiscal Year 2011 (Public Law 111-383; 124 Stat. 4157).
(T) Separate procurement line items for future
combat systems program.--Section 111 of the Duncan
Hunter National Defense Authorization Act for Fiscal
Year 2009 (Public Law 110-417; 10 U.S.C. 221 note).
(U) Separate procurement and research,
development, test, and evaluation line items and
program elements for sky warrior unmanned aerial
systems project.--Section 214 of the Duncan Hunter
National Defense Authorization Act for Fiscal Year 2009
(Public Law 110-417; 10 U.S.C. 221 note).
(V) Requirement for separate display of budgets for
afghanistan and iraq.--Section 1502 of the Duncan
Hunter National Defense Authorization Act for Fiscal
Year 2009 (Public Law 110-417; 10 U.S.C. 221 note).
(2) Clerical amendments.--(A) The table of sections at the
beginning of subchapter II of chapter 327 of title 10, United
States Code, is amended by striking the item related to section
4421.
(B) The table of sections at the beginning of chapter 9 of
title 10, United States Code, is amended by striking the items
related to sections 223, 225, 229, 234, 236, 237, 238, and
239b.
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